Indian Council for Research on International Economic Relations

Seminar Details

04 Sep 2006

FDI in Developing Countries: Special Reference to India and China
Monday, September 04, 2006
by Prof. V.N. Balasubramanyam
Professor V. N. Balasubramanyam, University of Lancaster, UK, spoke on several key aspects pertaining to FDI flows to India and China wherein he pointed out the diversities between India and China, after comparing select macroeconomic indicators for the two countries. Regarding the diversity in FDI inflows between the two countries, he argued that countries require ‘optimum’ levels of FDI, and that as far as India and China were concerned, India was yet to reach the optimum while China is likely to have crossed it. He supported his arguments by referring to the factor endowments and capital-labour ratios in two countries, as well as the human capital resources. The upshot of his arguments was that India probably required lesser FDI than China. He also indicated that India should focus more on technological collaborations rather than FDI.


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