#2529. Inward FDI, outward FDI, and firm-level performance in India

December 2026publication date
Proposal available till 30-05-2025
4 total number of authors per manuscript4500 $

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Journal’s subject area:
Geography, Planning and Development;
Economics and Econometrics;
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Abstract:
The paper uses a firm-level perspective to empirically examine the relationship between domestic and foreign FDI and firm performance. Using the Orbis database, estimates show that Indian firms that have at least one foreign shareholder and / or one foreign subsidiary outnumber those that do not. By controlling endogeneity by matching propensity scores and differences in differences, we show that the deeper the involvement of FDI, the greater the difference in productivity. Moreover, compared to investing overseas, obtaining foreign capital may be more conducive to improving the efficiency of Indian firms.
Keywords:
F23; firm-level performance; Foreign Direct Investment (FDI)

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