Can India become an export platform for global operations of Japanese and American multinational corporations affiliates?
Date
2012-02
Authors
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Publisher
ARTNeT, United Nations ESCAP
Abstract
This paper examines various indicators of the economic activities of Japanese and
American multinational corporation (MNC) affiliates in India compared to the case of
China, using the unique affiliate-level data. The study shows that Japanese MNCs in
India follow the typical MNC expansion strategy in that rapidly growing emerging
economy with a focus on the transport equipment industry, whereas United States
counterparts are concentrated more in information technology-related services, thus
strengthening service-led growth of the Indian economy. However, the author remains
sceptical of the expectation that India will grow as an export platform similar to China
because of the former country’s unique FDI experiences and rising domestic market
potential.
Description
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Synthesis Report
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Keywords
INDIA, FOREIGN INVESTMENT, MULTI-NATIONAL ENTERPRISE, INTERNATIONAL PRODUCTION NETWORK, TRADE AGREEMENTS, PRODUCTION ASPECTS, TRADE EFFICIENCY, ELECTRONICS INDUSTRY