Sahoo / Nataraj / Dash Foreign Direct Investment in South Asia

Policy, Impact, Determinants and Challenges
2014
ISBN: 978-81-322-1536-3
Verlag: Springer India
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 357 Seiten, eBook

During the 1990s, the governments of South Asian countries acted as ‘facilitators’ to attract FDI. As a result, the inflow of FDI increased. However, to become an attractive FDI destination as China, Singapore, or Brazil, South Asia has to improve the local conditions of doing business. This book, based on research that blends theory, empirical evidence, and policy, asks and attempts to answer a few core questions relevant to FDI policy in South Asian countries: Which major reforms have succeeded? What are the factors that influence FDI inflows? What has been the impact of FDI on macroeconomic performance? Which policy priorities/reforms needed to boost FDI are pending? These questions and answers should interest policy makers, academics, and all those interested in FDI in the South Asian region and in India, Pakistan, Bangladesh, Sri Lanka and Pakistan.

Zielgruppe

Research

Autoren/Hrsg.

Sahoo, Pravakar

Nataraj, Geethanjali

Dash, Ranjan Kumar

Inhaltsverzeichnis

1. Overview 2. South Asia: A Macro Overview 2.1 Introduction 2.2 Economic Reforms in South Asia: Country-wise Analysis 2.2.1  Reforms and Developments in India: A brief review 2.2.2  Economic reforms in Bangladesh: A Brief review 2.2.3  Economic reforms in Pakistan: a brief review 2.2.4  Economic Reforms in Sri Lanka: A brief review 2.2.5  Reforms in Nepal: A Review  2.3 Macroeconomic Performance of South Asia Countries2.3.1  Macroeconomic Performances of India2.3.2 Macroeconomic Performance of Pakistan2.3.3 Macroeconomic Performances of Bangladesh2.3.4 Macroeconomic Performances of Sri Lanka2.3.5 Macroeconomic Performances of Nepal 2.4 Concluding Remarks 3. Foreign Direct Investment Policy in South Asia  3.1  Introduction 3.2  FDI Policy Framework in India 3.2.1  Evolution of FDI Policy in India 3.2.2  State-level Reforms: Success Stories 3.2.3  Major Institutional Reforms to Promote FDI 3.2.4  Foreign Investment Policy and Routes for Investment Inflows 3.2.5  Taxation Policy in India 3.2.6  Repatriation of Investment Capital and Profits Earned in India 3.2.7  Labour and Employment Laws 3.2.8  Policy Regarding Intellectual Property Rights 3.2.9  Policy Regarding Acquisition of Immovable Property  3.2.10  Incentives for Foreign Investment  3.2.11  Restrictions on FDI and Rationale 3.3 FDI Policy in Bangladesh3.3.1  Evolution of FDI Policy in Bangladesh3.3.2  Institutions in Bangladesh3.3.3  Intellectual property rights and investment protection3.3.4  Labour laws3.3.5  Investment Incentives in Bangladesh 3.4 FDI Policy in Pakistan3.4.1  Evolution of FDI policy and FDI policy framework in Pakistan3.4.2  FDI Policy Framework3.4.3  Investment Policy for FDI in Different Sectors3.4.4  Taxation Policy and Investment Incentives in Pakistan3.4.5  Repatriation of Investment Capital and Profits Earned in Pakistan and Expatriate Facilitation 3.5 FDI Policy in Sri Lanka3.5.1  Evolution of FDI policy in Sri Lanka3.5.2  Policy framework and Institutions in Sri Lanka3.5.3  FDI institution3.5.4  Treatment and protection of FDI, repatriation of profits and  intellectual property law Treatment and protection of FDI, repatriation of profits and intellectual property law3.5.5  Labour Laws and Regulations3.5.6  Investment Incentives in Sri Lanka 3.5.7  Taxation Policy in Sri Lanka3.5.8  Pending FDI Reforms 3.6 FDI Policy in Nepal  3.6.1 Evolution of FDI policy in Nepal 3.6.2 Policy Framework, Incentives and Licensing in Nepal 3.6.3 Intellectual Property Protection 3.6.4 Foreign Investment Incentives and Facilities in Nepal 3.7  Conclusion  4. Foreign Direct Investment Inflows into South Asia FGD 4.1  Introduction 4.2  Global FDI and FDI Inflows into South Asia 4.2.1.  South-South FDI Flows 4.3 FDI Inflows to South Asian Countries 4.3.1. FDI Performance and Potential 4.3.2. Component-wise FDI inflows to South Asia (in million $) 4.4. Country-wise FDI Inflows to South Asia: Composition, Pattern, and Distribution 4.4.1. India 4.4.2. Pakistan 4.4.3. Sri Lanka 4.4.4. Bangladesh 4.4.5. Nepal 4.5. Intra-Regional Trade and FDI in South Asia 4.5.1. Indian Investment in Pakistan 4.5.2. Indian Investment in Bangladesh 4.5.3. Indian investment in Sri Lanka 4.5.4. India-Nepal 4.6. Global and South Asia FDI Outflows 4.6.1. FDI Outflows from South Asia 4.6.2. FDI Outflows from India and Its Reasons 4.6.3. FDI Outflows from Bangladesh 4.6.4. FDI Outflows from Pakistan 4.6.5. FDI Outflows Sri Lanka 4.6.6. FDI Outflows from Nepal 4.7 Summary and Conclusion  5. FDI in China: A comparative Perspective with India  5.1. Introduction  5.2.  Macroeconomic Picture of China and India 5.3.  A Comparative outlook of the trends in FDI flows  5.4  FDI Accounting In China & India5.5  Evolution of FDI Policy in China5.6.  Political Economy of FDI Policy: Autocracy vs. Democracy5.7.  Major reasons for discrepancy between FDI performances in China and  South Asia5.8. Policy Lessons for South Asia from China’s FDI success  6.  Determinants of FDI in South Asia  6.1.  Introduction 6.2.  Theories of FDI 6.3.  Brief Literature Review 6.4.  Potential Determinants of FDI 6.5.  Data Sources, Model Specification and Methodology 6.5.1. Times Series Analysis6.5.1.1 ADF Unit Root Test:6.5.1.2. ARDL Co-integration: 6.5.2. Panel data Analysis6.5.2.1 Panel Unit Root Test:6.5.2.2. Panel Co-integration Test6.5.2.3. Generalised Method of Moment6.6. Determinants of FDI: The Case of China6.7. Summary 7. FDI and Economic Growth in South Asia  7.1 Introduction 7.2 Theoretical Framework 7.2.1. Direct Impact 7.2.2. Indirect Impact 7.3  FDI and Growth: Empirical Evidence7.4  Conditions for Positive Impact of FDI on Growth 7.5 Data Source, Methodology, and Model Specification 7.5.1. Model Specification 7.6 Empirical Results7.6.1. Time Series Analysis of Impact of FDI on Growth 7.6.2. Panel Data Analysis 7.6.3. FDI and Absorptive Capacity 7.7.  Impact of FDI on China’s Growth: A Comparative Analysis 7.7.1 Brief Review of Literature for China 7.7.2 Empirical Results 7.8. Causality between FDI and real Per capita Income  7.8.1 Granger Causality: The vector error correction (VECM) procedure 7.8.2 Panel Causality Test  7.9. Summary and Conclusion 8. Impact of Foreign Direct Investment and Domestic Investment in South Asia: Time series and Panel Evidence  8.1 Introduction 8.2  Empirical Literature 8.3 Model Specification and Data Sources 8.4 Analysis of Empirical Results 8.4.1. Times series Analysis 8.4.2 Panel Analysis 8.5 Impact of FDI on DI in China: A Comparative Analysis 8.5.1. Causality between DI and FDI Using VECM Approach 8.6. Conclusion 9. Impact of Foreign Direct Investment on domestic Exports: Time series and Panel Evidence from South Asia 9.1 Introduction9.2 Export Performances of South Asian countries 9.3 Theoretical Background9.4 Review of Empirical Literature9.5. Model Specification 9.6. Data Sources and Methodology 9.6.1. Analysis of Empirical Results: Times Series Analysis 9.6.2. Panel Data Analysis 9.6.3. Causality between Exports and FDI  9.7. FDI and exports in China 9.7.1 Empirical Results 9.8. Conclusion 10.  FDI Reforms in South Asia: Unfinished Agenda, Future Reforms and Challenges  10.1 Introduction 10.2 Foreign Direct Investment in India — Unfinished Agenda 10.2.1.  Labour rules and regulations: 10.2.2.  Infrastructure development: a major obstacle to FDI 10.2.3.  Special Economic Zones: objectives and issues 10.2.4.  Land Acquisition 10.2.5.  Environmental clearances 10.2.6.  Trade reforms and FDI inflows 10.2.7.  The Unfinished Agenda and Way forward  10.3 FDI in Pakistan: Unfinished Agenda And Challenges 10.3.1. Difficulties and challenges for FDI 10.3.2. Land Acquisition in Pakistan 10.3.3. Pending Reforms and Way Forward 10.4 FDI in Bangladesh: Unfinished Agenda And Challenges 10.4.1. Difficulties and Limitations 10.4.2. Unfinished Agenda and the Way forward  10.5 FDI in Srilanka: Unfinished Agenda And Challenges  10.5.1. Difficulties and Limitations 10.5.2. Land Acquisition 10.5.3. Labour Regulations and Higher Wages 10.5.4. Taxation  10.5.5. Unfinished Agenga and Way forward  10.6. FDI in Nepal: Unfinished Agenda And Challenges 10.6.1. Land Acquisition in Nepal 10.6.1.2 Criteria for the estimation of Compensation 10.6.2. Taxation 10.6.3. Foreign Exchange Regulation 10.6.4. Labour Law 10.6.5. Unfinished Agenda and Way Forward 10.7. Conclusion: FDI in South Asia: The Way Forward References

Über Autor(innen)

Dr. Pravakar Sahoo is an Associate Professor at the Institute of Economic Growth (IEG), Delhi University, India. Earlier he served in a Senior Fellow position at the Indian Council for Research on International Economic Relations (ICRIER). He teaches macroeconomics to high-level government officials and policy makers like Indian economic service and Indian statistical service officers. He has published more than 50 research papers in refereed international and national journals on issues related to Macroeconomics, Development Economics, International Trade & investment, Regional Cooperation, Infrastructure and FDI. Dr. Sahoo has wide international exposure and has served as consultant to several international and national organizations including the Government of India. Dr. Geethanjali Nataraj is a Professor and Senior Fellow at the Observer Research Foundation, New Delhi. Before joining the ORF, she was a Director at the Federation of Indian Chambers of Commerce and Industry (FICCI) heading the Defence and Capital Goods sector along with providing inputs to the FICCI’s international division on China and Japan. Prior to joining the FICCI, Dr. Nataraj was a Senior Economist at the National Council of Applied Economic Research (NCAER) in New Delhi, India. From 2001 to 2006 she was a faculty member at the Indian Institute of Foreign Trade, New Delhi. She has held visiting faculty/researcher positions at the Institute of Finance Management, Tanzania; Foreign Trade Training Centre, Egypt; ADBI, Tokyo; and the Policy Research Institute, Ministry of Finance, Japan. She has prepared numerous policy relevant research studies for different ministries of the Government of India and other national and international organizations. She has published more than 30 research papers in reputed refereed journals in and outside India. Dr. Ranjan Kumar Dash is a Fellow at the Indian Council for Research on International Economic Relations (ICRIER). He received his Ph.D. in Financial Economics from Jawaharlal Nehru University. He also holds an M.Phil. from the JNU. Dr. Dash has previously worked at the National Council for Applied Economic Research and Institute of Economic Growth. Dr. He has more than ten years of research experience in macroeconomics, financial economics, international economics, econometric modelling and development economics. His areas of research interest are financial economics, international trade and finance, applied econometrics and development economics. He has published more than 20 academic articles in reputed international refereed journals, as well as several articles in edited works. He has presented papers and delivered lectures at many national and international conferences.