FDI and Industrial Organization in Developing Countries The Challenge of Globalization in India

Originally published in 2005. Analyzing the impact of FDI on industrial organization in India in the midst of changes wrought by globalization is a daunting task. The Indian economy is large and disparate, with a multitude of economic and political institutions and an unsteady record of policy reform. Drawing comparisons with other Asian economies, this monograph identifies the factors that contribute to the successful creation of globally competitive industries by illustrating the nature of interchange between FDI, indigenous capital, industry policy and institutions. It also analyzes the contribution of foreign affiliates and domestic enterprises to industrial development. Using case studies and quantitative analysis, the work reveals new and significant features of Indian business and industry. In view of the recent interest generated regarding India's prowess in high technology sectors and its potential to be the next economic 'powerhouse', the empirical analyses and issues raised in this book are both timely and comprehensive.

Contents: Introduction; The role of transnational corporations in economic development; The institutional underpinnings of national capabilities: some conceptual issues; Economic liberalization, industrial organization and enterprise performance in India; Technological accumulation and dynamic capability development in India's telecommunications industry: the dual initiatives of public enterprise and FDI; Global competition in local territories: the case of transnational corporations and local enterprises in the consumer electronics industry in India; FDI, indigenous enterprise and the pharmaceutical industry in India; Transnational corporations, local adaptation and inter-firm linkages in developing countries: some contrasts with local enterprises in India; The structure of vertical inter-firm linkages and foreign dependence in transnational corporations: the case of computer software, white goods and consumer electronics in India; Creation and appropriation of intellectual property rights in transnational corporations; FDI and the challenge of globalization in India: concluding remarks and future directions; Bibliography; Index.