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The clustering of FDI in India: the importance of peer effects

Nunnenkamp, Peter and Mukim, Megha (2012) The clustering of FDI in India: the importance of peer effects. Applied Economics Letters, 19 (8). pp. 749-753. ISSN 1350-4851

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Abstract

We assess the location choices of 6020 foreign investors at the level of Indian districts. Employing conditional logit models, we find that clustering of Foreign Direct Investment (FDI) is driven strongly by herding among investors from both, the same and other countries of origin. However, the behaviour of Nonresident Indians (NRIs) and German investors is strikingly different.

Item Type: Article
Official URL: http://www.tandfonline.com/doi/abs/10.1080/1350485...
Additional Information: © 2012 Taylor & Francis
Library of Congress subject classification: H Social Sciences > H Social Sciences (General)
H Social Sciences > HF Commerce
Journal of Economic Literature Classification System: F - International Economics > F2 - International Factor Movements and International Business > F23 - Multinational Firms; International Business
R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R12 - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade
Sets: Departments > International Development
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Date Deposited: 03 Oct 2011 10:33
URL: http://eprints.lse.ac.uk/38554/

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