Competitiveness in India and China: the FDI puzzle

References

• Ando, A. and Kimura, F., 2003. The formation of international production and distribution networks in East Asia, International Trade in East Asia, NBER-East Asia Seminar on Economics, Volume 14
   Google Scholar
• Andresson , U. , Forsgren , M. and Holm , U. 2002 . The strategic impact of external networks: subsidiary performance and competence development in the multinational corporation . Strategic Management Journal , 23 ( 11 ) : 979 – 996 .
   Web of Science ®Google Scholar
• Ashenfelter, O. and Jurajda, S., 2001. Cross-country comparisons of wage rates: the Big Mac index, Working paper. Princeton University and CERGE-EI/Charles University, Czech Republic
   Google Scholar
• Bai , C.E. and Qian , Q. 2010 . Infrastructure development in China: the cases of electricity, highways, and railways . Journal of Comparative Economics , 38 ( 1 ) : 34 – 51 .
   Web of Science ®Google Scholar
• Bajpai, N. and Dasgupta, N., 2004. What constitutes foreign direct investment? Comparison of India and China [online]. Earth Institute Working Paper CGSD WP #1, January, Columbia University, New York. Available from: www.earth.columbia.edu (http://www.earth.columbia.edu) [Accessed 30 June 2011]
   Google Scholar
• Basant , R. 2008 . “ Bangalore cluster: evolution, growth, and challenges ” . In Growing industrial serendipity and science , Edited by: Yusuf , S. , Nabeshima , K. and Yamashita , S. 147 – 193 . Washington, DC : The World Bank .
   Google Scholar
• Breznitz , D. and Murphree , M. 2011 . Run of the Red Queen: government, innovation, globalization, and economic growth in China , New Haven, CT : Yale University Press .
   Google Scholar
• Chen , C.H. , Mai , C.C. and Shih , C.T. 2007 . China and East Asia: an appraisal of regional economic integration . Eurasian Geography and Economics , 48 ( 3 ) : 320 – 340 .
   Web of Science ®Google Scholar
• Chen , H. and Chen , T.J. 1998 . Network linkages and location choice in foreign direct investment . Journal of International Business Studies , 29 ( 3 ) : 445 – 468 .
   Web of Science ®Google Scholar
• Chen , T.J. and Liu , M.C. 1998 . Production networks and patterns of trade: evidence from Taiwan . Pacific Economic Review , 3 ( 1 ) : 49 – 69 .
   Google Scholar
• Chia , S.Y. 2007 . Whither East Asian regionalism? An ASEAN perspective . Asian Economic Papers , 6 ( 3 ) : 1 – 36 .
   Google Scholar
• Contractor, F., 2009. Capitalism's future lies in networks and cooperation. Yale Global Online Magazine [online]. Available: http://yaleglobal.yale.edu/print/5578 . [Accessed 30 June 2011]
   Google Scholar
• Dunning , J.H. 1977 . “ Trade, location of economic activity and the NME: a search for an eclectic approach ” . In The international allocation of economic activity , Edited by: Ohlin , B. , Hesselborn , P. and Wikman , P.M. London : Macmillan .
   Google Scholar
• Dunning , J.H. 1980 . Toward an eclectic theory of international production: some empirical tests . Journal of International Business Studies , 11 ( 1 ) : 9 – 31 .
   Web of Science ®Google Scholar
• Dunning , J.H. 2008 . “ Space, location and distance in IB activities: a changing scenario ” . In Foreign direct investment, location and competitiveness , Progress in international business research Edited by: Dunning , J.H. and Gugler , P. Vol. 2 , 83 – 110 . Amsterdam : Elsevier .
   Google Scholar
• Ernst , D. and Kim , L. 2002 . Global production networks, knowledge diffusion, and local capability formation . Research Policy , 31 ( 8/9 ) : 1417 – 1429 .
   Web of Science ®Google Scholar
• Gao , T. 2003 . Ethnic Chinese networks and international investment: evidence from inward FDI in China . Journal of Asian Studies , 14 ( 4 ) : 611 – 629 .
   Google Scholar
• Gaulier, G., Lemoine, F. and Unal-Kesenci, D., 2009. China's integration in East Asia: production sharing, FDI & high-tech trade, CEPII Working Paper No. 2005-09, June. Available: http://www.cepii.fr . [Accessed 14 August 2011]
   Google Scholar
• Gereffi , G. and Guler , E. 2010 . “ Global production networks and decent work in India and China ” . In Labour in global production networks in India , Edited by: Posthuma , A. and Nathan , D. 103 – 126 . New Delhi : Oxford University Press .
   Google Scholar
• Ghani, E., Grover, A. and Kharas, H., 2011. Service with a smile: a new growth engine for poor countries. VOX [online], 4 May. Available: www.voxEU.org (http://www.voxeu.org) [Accessed 2 June 2011]
   Google Scholar
• Gregory , N. , Nollen , S. and Tenev , S. 2009 . New industries from new places: the emergence of the software and hardware industries in China and India , Washington, DC and Stanford, CA : The World Bank and Stanford University Press .
   Google Scholar
• Guruswamy , M. and Singh , Z.D. 2010 . Chasing the dragon: will India catch up with China? , Delhi : Dorling Kindersley (India) .
   Google Scholar
• Hanson , G.H. , Mataloni , R.J. Jr. and Slaughter , M.J. 2005 . Vertical production networks in multinational firms . The Review of Economics and Statistics , 87 ( 4 ) : 664 – 678 .
   Web of Science ®Google Scholar
• Henley , J.S. 2004 . Chasing the dragon: accounting for the under-performance of India by comparison with China in attracting foreign direct investment . Journal of International Development , 16 ( 7 ) : 1039 – 1052 .
   Google Scholar
• Huang , Y. 2008 . Capitalism with Chinese characteristics: entrepreneurship and the state , Cambridge : Cambridge University Press .
   Google Scholar
• Huang, Y. and Tang, H., 2012. FDI policies in China and India: evidence from firm surveys. World Economy, 35 (1), 91–105
   Google Scholar
• International Labour Office (ILO), 2008. Global wage report 2008/09. Minimum wages and collective bargaining: towards policy coherence [online]. Geneva: ILO. Available: http://www.ilo.org/wcmsp5/groups/public/–-dgreports/–-dcomm/documents/publication/wcms_100786.pdf (http://www.ilo.org/wcmsp5/groups/public/--dgreports/--dcomm/documents/publication/wcms_100786.pdf) [Accessed 8 January 2010]
   Google Scholar
• Kaur , I.N. 2009 . Are the geese still flying? Catch-up industrialization in a changing international economic environment . Pacific Rim Report , 51 ( January )
   Google Scholar
• Kearney, A.T., 2010. Investing in a rebound: the 2010 A.T. Kearney FDI confidence index. Available: http://www.atkearney.com/images/global/pdf/Investing_in_a_Rebound-FDICI_2010.pdf [Accessed 2 June 2011]
   Google Scholar
• Khanna , T. 2007 . Billions of entrepreneurs: how China and India are reshaping their futures – and yours , Boston, MA : Harvard Business School Press .
   Google Scholar
• Kose, M. et al., 2007. Global business cycles: convergence or decoupling? [online]. Available: http://ssrn.com/abstract = 1136247 (http://ssrn.com/abstract=1136247) [Accessed 4 March 2011]. DOI:10.1111/j.0042-7092.2007.00700.x
   Google Scholar
• Krugman , P. 1991 . Increasing returns and economic geography . Journal of Political Economy , 99 : 483 – 499 .
   Web of Science ®Google Scholar
• Kumar , R. and Worm , V. 2004 . Institutional dynamics and the negotiation process: comparing India and China . International Journal of Conflict Management [online] , 15 ( 3 ) : 304 – 334 . Available: http://www.opus-seminars.com/zarticles/RK-China-India-Negotiation.pdf [Accessed 6 April 2011]
   Web of Science ®Google Scholar
• Lall , M.C. 2001 . India's missed opportunity: India's relationship with the non resident Indians , London : Ashgate .
   Google Scholar
• Lemoine , F. and Unal-Kesenci , D. 2004 . Assembly trade and technology transfer: the case of China . World Development , 32 ( 5 ) : 829 – 850 .
   Web of Science ®Google Scholar
• Li, F. and Li, J., 2009. Comparative research of FDI policy between China and India. Journal of Shijiazhuang University of Economics, 32 (4) [online]. Available: http://en.cnki.com.cn/Article_en/CJFDTOTAL-HBDX200904015.htm [Accessed 2 June 2011]
   Google Scholar
• Lo , C.P. and Liu , B.J. 2009 . Why India is mainly engaged in offshore service activities, while China is disproportionately engaged in manufacturing? . China Economic Review , 20 ( 2 ) : 236 – 245 .
   Web of Science ®Google Scholar
• Luo , Y. 2001 . Determinants of entry in an emerging economy: a multilevel approach . Journal of Management Studies , 38 ( 3 ) : 443 – 472 .
   Web of Science ®Google Scholar
• Majocchi , A. and Strange , R. 2007 . The FDI location decision: does liberalization matter? . Transnational Corporations [online] , 16 ( 2 ) : 1 – 40 . Available: http://www.unctad.org/en/docs/iteiit20072a1_en.pdf
   Google Scholar
• Mattoo, A., Olarreaga, M. and Saggi, K., 2001. Mode of foreign entry, technology transfer, and FDI policy, CEPR Discussion Paper No. 2870. Available: http://ssrn.com/abstract = 276776 (http://ssrn.com/abstract=276776) . [Accessed 4 March 2011]
   Google Scholar
• Meredith , R. 2007 . The elephant and the dragon: the rise of India and China and what it means for all of us , London : Norton .
   Google Scholar
• Miniwatts Marketing Group, Internet World Stats, 2011. Available: http://www.internetworldstats.com/asia.htm [Accessed 17 August 2011]
   Google Scholar
• Muller , T. 2006 . Analyzing modes of foreign entry: greenfield investment versus acquisition . Review of International Economics , 15 ( 1 ) : 93 – 111 .
   Web of Science ®Google Scholar
• Naughton , B. , ed. 1997 . The China circle: economics and electronics in the PRC, Taiwan, and Hong Kong , Washington, DC : Brookings Institution Press .
   Google Scholar
• Patel , U.R. and Bhattacharya , S. 2010 . Infrastructure in India: The economics of transition from public to private provision . Journal of Comparative Economics , 38 ( 1 ) : 52 – 70 .
   Web of Science ®Google Scholar
• Porter , M.E. 1994 . The role of location in competition . Journal of Economics and Business , 1 ( 1 ) : 35 – 39 .
   Google Scholar
• Porter , M. 1998a . The competitive advantage of nations , New York : Free Press . First published in 1990
   Google Scholar
• Porter , M. 1998b . Clusters and the new economics of competition . Harvard Business Review , 76 ( 6 ) : 77 – 90 .
   PubMed Web of Science ®Google Scholar
• Posthuma , A. and Nathan , D. 2010 . Labour in global production networks in India , New Delhi : Oxford University Press .
   Google Scholar
• Prime , P.B. 2009 . China and India enter global markets: comparing economic development and future prospects . Economic Geography and Economics , 50 ( 4 ) : 621 – 642 .
   Google Scholar
• Qi , L. and Prime , P.B. 2009 . Market reforms and consumption puzzles in China . China Economic Review , 20 ( 3 ) : 388 – 401 .
   Web of Science ®Google Scholar
• Rugman , A.M. and Verbeke , A. 2001 . Subsidiary-specific advantages in multinational enterprises . Strategic Management Journal , 22 ( 3 ) : 237 – 250 .
   Web of Science ®Google Scholar
• Saez , L. 1998 . A comparison of India and China's foreign investment strategy toward energy infrastructure . The Journal of Developing Areas , 32 ( 2 ) : 199 – 220 .
   Google Scholar
• Saxenian , A.L. 2002 . Transnational communities and the evolution of global production networks: the cases of Taiwan, China and India . Industry and Innovation , 9 ( 3 ) : 183 – 202 .
   Google Scholar
• Sebastian , R. , Parameswaran , A. and Yahya , F. 2006 . Doing business in India . New Zealand Journal of Asian Studies , 8 ( 1 ) : 17 – 40 .
   Google Scholar
• Siedschlag, I., Zhang, X. and Cahill, B., 2010. The effects of the internationalization of firms on innovation and productivity, ESRI Working Paper No. 363, December. Available: www.esri.ie (http://www.esri.ie) [Accessed 2 June 2011]
   Google Scholar
• Sinha , S.S. , Kent , D.H. and Shomali , H. 2007 . Comparative analysis of FDI in China and India . Journal of Asia Entrepreneurship and Sustainability , III ( 2 ) : 60 – 80 .
   Google Scholar
• Sohn , B.H. 2002 . Regionalization of trade and investment in East Asia and prospects for further regional integration . Journal of the Asia Pacific Economy , 7 ( 2 ) : 160 – 181 .
   Google Scholar
• Sung , Y.-W. 2007 . Made in China: from world sweatshop to a global manufacturing center . Asian Economic Papers , 6 ( 3 ) : 43 – 72 .
   Google Scholar
• Swamy , S. 2006 . Financial architecture and economic development in China and India , Delhi, India : Konark Publishers PVT LTD .
   Google Scholar
• Sweeney , M. 2010 . Foreign direct investment in India and China: the creation of a balanced regime in a globalized economy . Cornell International Law Journal , 43 : 207 – 248 .
   Web of Science ®Google Scholar
• Thakur, R., 2003. China is outperforming India. International Herald Tribune, 7 January
   Google Scholar
• Thomson SDC, 2010. International mergers and acquisitions database 2010 [online]. [Accessed 4 June 2010]
   Google Scholar
• Thursby , J. and Thursby , M. 2006 . Here or there? a survey of factors in multinational R&D location , Washington, DC : The National Academic Press . Report to the Government-University-Industry Research Roundtable, National Academy of Sciences, National Academy of Engineering, and Institute of Medicine
   Google Scholar
• UNCTAD Inward Performance Index, 2009. Data available for 1988–2007. Available at http://www.unctad.org/templates/webflyer.asp?intitemid = 2471&lang = 1 (http://www.unctad.org/templates/webflyer.asp?intitemid=2471&lang=1) [Accessed 28 January 2009]
   Google Scholar
• UNCTAD, 2008, 2009. World investment report [online]. Date available for 1988–2007. Available from: http://www.unctad.org [Accessed 28 January 2009]
   Google Scholar
• UNCTAD, UnctadStat, 2010. Available from http://unctadstat.unctad.org/TableViewer/tableView.aspx?ReportId = 98 (http://unctadstat.unctad.org/tableviewer/tableview.aspx?reportid=98) . [Accessed 3 March 2010]
   Google Scholar
• UNIDO, Available from: http://www.unido.org [Accessed 28 January 2009]
   Google Scholar
• United Nations, UNstats 2011. Data available 1990–2010. Available at http://mdgs.un.org/unsd/mdg/Data.aspx . [Accessed 18 August 2011]
   Google Scholar
• Walker, M., 2006. India touts its democracy in bid to lure investors away from China. The Wall Street Journal, 20 January, p. A2
   Google Scholar
• Wei , W. 2005 . China and India: any difference in their FDI performances? . Journal of Asian Economics , 16 ( 4 ) : 719 – 736 .
   Google Scholar
• Wei, W. and Dutta, M., 2004. Foreign direct investment in China: an analysis of source country and sector of utilization [online]. Asian economic cooperation in the new millennium: China's economic presence, 297–321 In: C. Wiemer and H. Cao, eds. Available from: http://ebooks.worldscinet.com/ISBN/9789812565716/9789812565716_0015.html [Accessed 13 November 2010]
   Google Scholar
• Wiemer , C. and Cao , H. , eds. 2004 . Asian economic cooperation in the new millennium: China's economic presence , River Edge, NJ : World Scientific Publishing .
   Google Scholar
• World Bank, Enterprise surveys, 2010. [online]. Available from: http://www.enterprisesurveys.org/ [Accessed 6 June 2010]
   Google Scholar
• World Bank, World databank, 2010. World Development Indicators and Global Development Finance, annual data for multiple years, 242 countries [online]. Available from: http://databank.worldbank.org [Accessed 11 January 2010]
   Google Scholar
• World Economic Forum, 2009. The Global Competitiveness Report 2009–2010 [online]. Available from: http://www.weforum.org/pdf/GCR09/GCR20092010fullrankings.pdf [Accessed 2 June 2011]
   Google Scholar
• World Economic Forum, 2009 Global information technology report [online]. Available from: http://networkedreadiness.com [Accessed 17 August 2011]
   Google Scholar
• Wu , L.X. and Yue , T.S. 2006 . Supply clusters: a key to China's cost advantage . Supply Chain Management Review , 10 ( 2 ) : 46 – 51 .
   Google Scholar
• Yardley, J., 2011. Where growth and dysfunction have no boundaries. The New York Times, 9 June, pp. A1, A12
   Google Scholar
• Yusuf , S. , Nabeshima , K. and Yamashita , S. , eds. 2008 . Growing industrial clusters in Asia: serendipity and science , Washington, DC : The World Bank .
   Google Scholar
• Zheng , P. 2009 . A comparison of FDI determinants in China and India . Thunderbird International Business Review , 51 ( 3 ) : 263 – 279 .
   Google Scholar