Kiel Working Papers, Kiel Institute for World Economics
No 1854:
Regional Concentration of FDI in Post-reform India: A District-level Analysis
Frank Bickenbach, Wan-Hsin Liu and Peter Nunnenkamp
Abstract: We analyze the concentration of FDI in India at the
district level, based on project-specific location choices since the reform
program in the early 1990s. The decomposition property of the Theil index
allows us to trace changes over time in the overall concentration of FDI to
changes in concentration between and within subgroups of districts. We also
differentiate between major types and sources of FDI. We find that the
extensive margin of concentration persistently increased, with an ever
larger number of districts not attracting any projects. The intensive
margin increased as well but the increase leveled off in the more recent
past. These trends hold for essentially all types and sources of FDI, while
the average level of concentration varies considerably between these types
and sources
Keywords: FDI, project location, Theil index, decomposability, India; (follow links to similar papers)
JEL-Codes: F23,; R12; (follow links to similar papers)
30 pages, July 2013
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