Graduating to globalisation: a study of Southern multinationals


Demirbas D. , Patnaik I., Shah A.

INDIAN GROWTH AND DEVELOPMENT REVIEW, vol.6, no.2, pp.242-259, 2013 (Journal Indexed in ESCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 6 Issue: 2
  • Publication Date: 2013
  • Doi Number: 10.1108/igdr-12-2012-0050
  • Title of Journal : INDIAN GROWTH AND DEVELOPMENT REVIEW
  • Page Numbers: pp.242-259

Abstract

Purpose - Recent developments in the literature on international trade and foreign direct investment (FDI) emphasise the role of firm characteristics in shaping firm participation in exports and FDI. The seminal work of Melitz and Helpman-Melitz-Yeaple (HMY) places heterogeneity in firm productivity at the heart of exporting and FDI. While the HMY hypothesis finds support for firms in the industrialised economies, the evidence from developing economies is limited. This paper attempts to contribute empirical insights into the theoretical framework laid out by Melitz, Helpman et al., Head and Ries with evidence from India.