Foreign direct investment, prices and efficiency: Evidence from India

• 成果类型: Article
• 署名作者: Ali, Nesma; Stiebale, Joel
• 署名单位: The World Bank; Heinrich Heine University Dusseldorf
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2025.104202
• 发表日期: 2026
• 关键词: trade liberalization; multiproduct firms; domestic firms; PRODUCTIVITY; spillovers; FDI; markups; misallocation; Heterogeneity; acquisitions

摘要

This paper uses a rich panel dataset of Indian manufacturers to analyze the effects of foreign direct investment (FDI) on domestic firms. Detailed product-level information on prices and quantities allows us to estimate physical productivity and marginal costs. In line with the previous literature, we find little evidence of horizontal spillovers based on commonly used measures of revenue productivity. In contrast, we measure sizable efficiency gains using measures that are not affected by pricing heterogeneity. Our results indicate that domestic firms do benefit from the ability of multinational subsidiaries to produce high-quality products at relatively low cost.