Politics of Foreign Direct Investment in South Asia: Sojin Shin

7/4/2017 Politics of Foreign Direct Investment in South Asia - Political Science - Oxford Bibliographies
Politics of Foreign Direct Investment in South

Asia
Sojin Shin
LAST MODIFIED: 27 OCTOBER 2016

DOI: 10.1093/OBO/9780199756223-0195
Introduction
Politics of foreign direct investment (FDI) would be defined as political sources of affecting the theories and practices of FDI. Politics of FDI
in South Asia is especially an underexplored area in political studies. It is not only because the existing scholarly literature has excessively
paid attention to the econometric approach rather than political and sociological context, but the subject has also been focused on a very
few countries in South Asia. South Asia indicates the southern part of Asia particularly including eight countries—Afghanistan, Bangladesh,
Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. The research scope of the subject, however, has been marginalized. For
example, the case studies of Afghanistan, Bhutan, and Maldives hardly exist except a survey series conducted by the World Bank for the
business environment. Despite various political, economic, and societal problems in the region, South Asian countries in general have
reformed foreign investment regulatory regimes incrementally since the late 1970s and throughout the 1980s and 1990s. The rationale
behind such economic reforms was that FDI inflows are considered to be beneficial to host economies because FDI tends to have positive
relations with technology transfer, domestic investments, and economic growth. For these reasons, most of the South Asian economies
have been pursuing the economic reforms until the present to attract more foreign investments. Despite the continued reforms by the South
Asian economies, however, the share of FDI inflows to South Asia in world FDI flows was only 3.4 percent, and that of FDI outflows from
South Asia was less than 1 percent in 2014. These figures are a stark difference compared to those of FDI flows, for example, 31 percent
and 28 percent, in Southeast Asia. What explains the low level of FDI flows in South Asia? How has the level of FDI flows evolved over
time in the region? What significant issues have emerged on the subject? This article provides the general overviews of the patterns and
methodology of FDI flows in South Asia and parses the domestic determinants and sociopolitical conflicts of FDI in the region that have
appeared in the scholarship.
General Overviews: The Trends and Methodology of FDI Flows in South Asia
UNCTAD’s World Investment Report (WIR) is an annually issued series. The series of WIR is very helpful to see the pattern and source of
foreign direct investment (FDI) flows to differing regions over the world. The series is enormously useful to learn the significant issues of
foreign investments in a particular region of the year. For example, UNCTAD 2015 stresses how FDI inflows to the automotive industry in
South Asia, especially to India, can reshape the trajectory of industrial progress. The World Bank’s Doing Business survey series provides
useful information on the various indicators for global investors to embark upon investment projects in South Asia. The report series
presents the world ranking of the eight South Asian countries on several issues to ease business such as starting a business, dealing with
construction permits, getting infrastructural support, protecting minority investors, paying taxes, enforcing contracts, and resolving
insolvency for new investment projects. The World Bank 2009 and The World Bank 2010 are the first subnational level studies on India and
Pakistan within the series. The World Bank’s reports may be beneficial for academics who would like to learn problems and prospects of
FDI flows in general in South Asia. Kidron 1965 is helpful to understand the pattern of foreign investments to India in the transitional period
between the colonial and the postcolonial eras. Sahoo, et al. 2014 provides an extensive introduction to FDI in five select countries in
South Asia. This book is good for a comprehensive understanding of the volume, pattern, and composition of FDI inflows to South Asia in
recent years, while Kidron 1965 would be illuminating for FDI flows in the earlier period. The edited volume Chowdhury and Mahmud 2008
would also be helpful to compare the macroeconomic performance of South Asian countries including FDI for the recent years.
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Chowdhury, Anis, and Wahiduddin Mahmud, eds. Handbook on the South Asian Economies. Cheltenham, UK, and Northampton,
MA: Edward Elgar, 2008.
The seven chapters of this edited volume cover the seven select South Asian countries’ key economic indicators and performance such as
gross domestic product (GDP), trade, and investment. FDI flows in each state are also discussed briefly in the papers of the volume. It is
informative and comprehensive to understand the South Asian countries’ macroeconomic performance with a comparative perspective.
Kidron, Michael. Foreign Investments in India. London and New York: Oxford University Press, 1965.
Kidron’s book demonstrates the pattern of foreign investments to India from the 1910s when the British capital was the most significant
financial resource to the mid-1960s when the origin of foreign investments to India became quite diverse. This volume would be good to
follow the various issues of policy change such as industrial policy, foreign exchange rate, taxation regime, and others in the realm of
foreign investments in chronological order.
Sahoo, Pravakar, Geethanjali Nataraj, and Ranjan Kumar Dash. Foreign Direct Investment in South Asia: Policy, Impact,
Determinants and Challenges. New Delhi: Springer, 2014.
Deals with five select countries in South Asia—India, Pakistan, Bangladesh, Sri Lanka, and Nepal. It not only details the constraints to FDI
inflows to the region but has also proposed reforms required to further liberalization in FDI policy. This book will be very useful for those
who want to grasp a keen understanding of the main sources of FDI inflows to the five countries.
UNCTAD. World Investment Report 2015: Reforming International Investment Governance. Geneva, Switzerland: UNCTAD, 2015.
Very informative for anyone who begins a study on FDI. The series is enormously useful to compare the FDI statistics between differing
regions of the world.
The World Bank. World Bank Indicators.

Provides the historical data of FDI inflows to a particular country in the world. FDI inflows presented in the World Bank online source are
the sum of equity capital, reinvestment of earnings, and other capital. The data is available for the 1980s to the present in current US
dollars.
The World Bank. Doing Business.

Basic and informative online source for a comparative study. It ranks 189 economies in the world in the ten selected indicators of doing
business. It also offers subnational ranks for several countries like India and Pakistan.
The World Bank. Subnational Doing Business in India 2009. Washington, DC: The World Bank, 2009.
This volume covers seventeen locations with the focus on select subnational states in India on the subject of ease of doing business. The
report says that the various ranks in the volume were assessed from a small and medium-sized domestic firm perspective. Despite the
limited scope of methodology, the report is useful for those who want to know the varieties of institutional reforms to build investment-
friendly environment among states in India.
The World Bank. Subnational Doing Business in Pakistan 2010. Washington, DC: The World Bank, 2010.
This report deals with thirteen cities in Pakistan and measures them with indicators used for other countries’ subnational doing business
reports. It was prepared by the World Bank and the Economic Reform Unit of the Pakistan’s Ministry of Finance.
Classical Readings on FDI
Hymer 1976, a seminal work on firm-specific advantages, was the first to explain why we need to pay attention to firms in analyzing
international capital flows. It was a breakthrough in foreign direct investment (FDI) research because it sought to fill the gap of market-
centered approach. The market-centered perspective that stemmed from the neoclassical theory was prevailing in the 1950s and the
1960s. The neoclassical theory had substantial limitations to explain the behaviors of multinational enterprises (MNEs) in international
capital flows, since it offered a formula that would work in the world of perfect competition where no transaction costs exist. Hymer 1976
and Dunning 1979 have influenced the substantial body of contemporary literature on the analyses of MNEs and international organization
theory (see Economic Variables and Multinational Enterprises in South Asia). The productive cycle theory introduced by Vernon 1966 was
one of the most cited theories in the category of MNE studies. Kindleberger 1969 and Vernon 1971 examine the American MNEs’
behaviors in the process of FDI closely with other countries in the 1960s and the 1970s respectively. Some transnational companies other
than the American MNEs were also discussed in the mainstream scholarship on the political economy of FDI. For example, Kojima 1978
attempts to conceptualize the “Japanese-type” FDI by examining the Japanese MNEs’ behaviors in the world market. Lall 1980 presents
how strong India was in low to medium-level technology transfer in the 1970s through training activities for Iranian engineers.
Dunning, John H. “Explaining Changing Patterns of International Production: In Defence of the Eclectic Theory.” Oxford Bulletin
of Economics and Statistics 41.4 (1979): 269–295.
Dunning’s classical work provides a useful tool to parse why international production emerges. Its argument on ownership, locational, and
internationalization advantages—“OLI” or eclectic theory—is widely known to those who work on the behaviors of multinational firms.
Despite its focus on US-owned MNEs in the 1950s and the 1960s, its findings are still applicable to MNEs’ investment practices today.
Hymer, Stephen Herbert. International Operations of National Firms—A Study of Direct Foreign Investment. Cambridge, MA: MIT,
1976.
Hymer’s monograph is based on his doctoral dissertation that was submitted to Massachusetts Institute of Technology in 1960. It was the
first to take MNEs as a major actor in international capital movements, breaking the prevailing explanation of the neoclassical economic
theory of portfolio flows where the MNEs have no role. Hymer’s original dissertation has been one of the classical readings in the
scholarship of industrial organization theory, even though it has theoretical weaknesses that have been discussed by many scholars
henceforth.
Kindleberger, Charles Poor. American Business Abroad: Six Lectures on Direct Investment. New Haven, CT: Yale University
Press, 1969.
As one of the classical literatures on FDI analyses, this volume introduces six interesting lectures: (1) the theory of direct investment; (2)
US concern with direct investment; (3) US direct investment in Europe and Japan; (4) US direct investment in the dominions; (5)
investment in less developed countries; and (6) international corporation.
Kojima, Kiyoshi. Direct Foreign Investment: A Japanese Model of Multinational Business Operations. London: Croom Helm
London, 1978.
This book aims to define the “Japanese-type” FDI based on the corresponding principles of comparative production costs and comparative
profit rates. It also provides a comparative perspective on the Japanese type of FDI with the American type of FDI in technology transfer.
As an extension of firm-level research, the book also discusses the group activities of Japanese MNEs and the code of conduct for the
companies.
Lall, Sanjaya. “Developing Countries as Exporters of Industrial Technology.” Research Policy 9.1 (1980): 24–52.
This paper examines the emergence of domestic enterprises in the Third World as exporters of capital and technology to other developing
and industrialized countries. By looking at five forms of technology exports—turnkey projects, engineering consultancy for the
manufacturing industry, licensing of know-how and managerial services, direct investment, and training schemes—closely, it presents how
strong several developing countries such as India, Argentina, Brazil, and Mexico were in technology transfer at the capital-intensive sectors
in the 1970s.
Vernon, Raymond. “International Investment and International Trade in the Product Cycle.” Quarterly Journal of Economics 80.2
(1966): 190–207.
Vernon’s product cycle theory has been used to explain the division of labor in international investment and trade between advanced
economies and less developed countries in the early 1970s, although it has been criticized for its technology determinism and for ignoring
the location-specific advantages.
Vernon, Raymond. Sovereignty at Bay: The Multinational Spread of US Enterprises. Harlow, UK: Longman, 1971.
This volume is another of Vernon’s insightful works on MNEs. The eight chapters of the book discuss the nature of MNEs in the raw
material ventures and the manufacturing industries. It is one of the pioneering works on the problems and prospects of FDI and the
behaviors of MNEs.
Domestic Determinants of South Asian FDI Flows
One of the conventional tools for foreign direct investment (FDI) studies is to look at the correlation between the economic or political or
institutional variables, and the level of FDI flows in host countries. The substantial body of literature on South Asian countries on this
subject has also explored the domestic determinants of FDI flows in host countries. The endogenous determinants in the political,
economic, and institutional spheres are, for example, political regime, political stability, political elites, economic reforms, corruption,
economic freedom, trade openness, infrastructure development, capital returns, foreign exchange, property rights, and many other
monetary and industrial policies. The next part of the discussion will introduce seminal works dealing with sociopolitical variables. The
discussion is followed by debates on institutional variables, which include law, monetary policy, economic cooperation, and regional
integration issues. The next part will examine FDI studies on economic variables of which subjects vary from liberalization-FDI-growth
nexus to financial crises and FDI.
Socio-Political Variables
Here are some seminal works looking at the relationship between the sociopolitical variables and FDI flows in South Asia. The next part will
introduce some studies on the FDI policy change especially in the case of India in the context of political regime changes and economic
reforms. And the next part of the discussion will introduce works on the same subject in other South Asian countries.
Political Regime Changes, Political Elites, and Economic Reforms in India
Jenkins 2000 discusses how democratic politics in India affected the economic reform process. His book provides the detailed political
history of the subject including how foreign investments became popular. Nayar’s two chapters and Ahluwalia’s paper in Nayar 2007 are
rich in historical background for India’s liberalization. They would be good to understand how the political regime has changed influenced
by globalization to promote FDI flows in India. Tendulkar and Bhavani 2007 also offers an extensive and insightful discussion on the
economic reform process in India. Shin 2014 demonstrates how the socio-political factors like the ideas of political elites and interest
groups have affected the level of FDI inflows with a particular focus on India. It is helpful to understand what domestic and international
circumstances have encouraged the policymakers of India to change policy regimes gradually favoring foreign capital. Mukherji 2014
analyzes how India has transformed regulatory structure toward globalization from an institutionalist perspective that sees institutions
having a sticky nature and facilitating particular economic behavior. Sinha 2005 investigates the relationship between the political regime
change and the private sector development in three select subnational states in India. The empirically enriched discussion in Sinha’s book
would be very helpful to understand the increase in FDI flows in India in the context of the private sector development. However, FDI is only
partly dealt with in chapters and most of the data used in the book is presenting the pre-reform period. Varshney 1998 provides the detailed
political episodes supporting his argument of how Rao government could push the economic reforms even though the Congress party did
not take the majority of Parliament. The authors of Mathur and Singh 2013 found that both the corruption perception and democracy
variable negatively affects FDI flows to developing countries like India and China.
Jenkins, Rob. Democratic Politics and Economic Reform in India. Cambridge, UK: Cambridge University Press, 2000.
Seven chapters in the volume deal with the politics of economic reform in India. Discussions in the book address the issues of the evolution
of economic reform, theoretical and comparative perspectives on the politics of economic reform, political incentives and political
institutions in pursuing economic reform. The book describes the political environment in detail that encourages the economic reform
process.
Mathur, Aparna, and Kartikeya Singh. “Foreign Direct Investment, Corruption, and Democracy.” Applied Economics 45 (2013):
991–1002.
Mathur and Singh examine whether the perceptions of corruption and democracy impact on FDI inflows to emerging market economies
including India and China over the time period 1980–2000. They found that the corruption perception plays an important role in investors’
decision of where to invest, and more democratic countries receive less FDI than less democratic countries. However, the article has
limitations in a sense that the democracy variable is simply a measure of political rights and civil liberties.
Mukherji, Rahul. Globalization and Deregulation: Ideas, Interests, and Institutional Change in India. New Delhi: Oxford University
Press, 2014.
Mukkherji argues a concept of “tipping point” model to understand India’s gradual institutional change toward globalization by comparing
two liberalization attempts in 1966 and 1991. The first three chapters are helpful to learn how ideas and interests of domestic actors
influenced the gradual institutional change. They provide the political background of how foreign investors were invited to India’s industry.
The final two chapters discuss the economic reform of India’s telecommunication sector intensively.
Nayar, Baldev Raj, ed. Globalization and Politics in India. New Delhi: Oxford University Press, 2007.
The twenty-two excellent papers in this edited volume discuss India’s domestic policy change in the process of liberalization. The entire
volume is very helpful to understand the historical evolution of policy regime change and economic reforms in India. Chapters 1 and 9
written by Baldev Raj Nayar, and Chapter 10 contributed by Montek Singh Ahluwalia, mainly explain the policy regime change and FDI
flows in India.
Shin, Sojin. “FDI in India: Ideas, Interests, and Institutional Changes.” Economic and Political Weekly 49.3 (2014): 66–71.
Shin’s article examines the pattern of FDI inflows to India based on the regime changes from 1969 up to date. Demarcating three periods of
the regime change—(1) anti-FDI (1969–1975), (2) selective FDI (1975–1991), and (3) pro-FDI (after 1991), the author discusses how the
ideas and interests of political actors have affected the institutional changes favoring FDI at the central government of India.
Sinha, Aseema. The Regional Roots of Developmental Politics in India: A Divided Leviathan. New Delhi: Oxford University Press,
2005.
Sinha’s book compares the political sources of differing levels of development in select states in India, namely Gujarat, West Bengal, and
Tamil Nadu, by looking at the policy regime change to facilitate the private sector. It provides an excellent analysis to understand state
politics that have promoted or regulated the private sector investments, although its focus is domestic investment rather than foreign
investment.
Tendulkar, Suresh, and T.A. Bhavani. Understanding Reforms: Post-1991 India. New Delhi and New York: Oxford University Press,
2007.
Nine chapters of the volume extensively discuss the economic reform process in India from independence up to the present. Chapter 8 in
particular, on the political economy of reforms, discusses how the central government of India has steered liberalizing domestic and
international private investment. The volume will be helpful for those who would like to learn how the detailed political episodes happened
in the process of economic reforms in India.
Varshney, Ashutosh. “Mass Politics of Elite Politics? India’s Economic Reforms in Comparative Perspective.” Journal of Policy
Reform 2.4 (1998): 301–335.
Discusses the relationship between mass politics and economic reforms, distinguishing it from elite politics and economic reforms.
Varshney argues that collective emotions aroused by identity politics and ethnic conflict facilitated economic reforms in India by comparing
the reform efforts by the Rajiv Gandhi government and the Narasimha Rao government. It is helpful to see how both FDI and foreign
portfolio investment policies were deregulated in Rao’s government.
Political Regime Changes and Economic Reforms in Other South Asian Countries
Parikh 2006 discusses the pattern of economic growth and policy change over time in five select South Asian countries. The book will be
beneficial for those who would like to see the relationship between the political regime change and FDI flows in the South Asian countries
with a comparative perspective. The papers in Dee 2012 examine the impact of economic reforms in South Asian countries. Herring 1987
provides the historical explanation of how Sri Lanka opened its economy in 1977. Ali’s chapter in Alauddin and Hasan 1999 sees that both
the Foreign Private Investment (Promotion and Protection) Act 1980 and the Bangladesh Export Processing Zones Authority Act 1980
encouraged foreign investments in Bangladesh in the 1980s while it indicated that a mass upsurge in 1990 resulted in a democratic regime
that pursued economic liberalization.
Alauddin, Mohammad, and Samiul Hasan. Development, Governance, and the Environment in South Asia: A Focus on
Bangladesh. New York: St. Martin’s, 1999.
Consists of nineteen chapters examining the socioeconomic policy and fiscal governance of the South Asian countries. Chapter 5
contributed by Muhammad Yunus Ali primarily explores economic liberalization and growth in Bangladesh focused on the role of FDI. The
chapter is helpful to learn the development of foreign private investment in Bangladesh from its independence in 1971.
Dee, Philippa, ed. Economic Reform Processes in South Asia: Toward Policy Efficiency. Abingdon, UK, and New York: Routledge,
2012.
Consists of ten chapters examining theories and practices of policy efficiency in the economic reforms of South Asian countries.
Discussions deal with economic integration, banking sector reforms, and trade reforms especially in India, Pakistan, and Sri Lanka.
Chapter 6, contributed by Pravakar Sahoo, discusses the FDI policy change focusing on the post-reform period after 1991. Sahoo argues
that infrastructural development, flexible labor laws, and generous relief package with social entrepreneurship for land acquisition can
promote FDI inflows to India.
Herring, Ronald J. “Economic Liberalization Policies in Sri Lanka: International Pressures, Constraints, and Supports.” Economic
and Political Weekly 22.8 (1987): 325–333.
Herring’s piece is helpful to learn how Sri Lanka’s dependent welfare state responded to the international forces in the 1970s and opened
its industry to foreign capital. Although the work substantially deals with the economic policy regime change in general rather than the focus
on foreign investments, it provides the detailed evidence of how the global environment forced the Sri Lankan state to open its market in
1977.
Parikh, Kirit S., ed. Explaining Growth in South Asia. New Delhi: Oxford University Press, 2006.
The six chapters of this edited volume are useful to understand the major economic policy change including FDI-related institutions in five
select South Asian countries, namely, Bangladesh, India, Nepal, Pakistan, and Sri Lanka. With the exception of the introductory chapter,
the remaining five chapters focus on each country’s economic growth pattern over time.
Institutional Variables I—Law and Policy
Some of the recent works on FDI take law and policy as an independent variable in analyzing the pattern of FDI flows to South Asia. For
example, the law and policy include not only property law and taxation system but also the policymaking environment. This subfield is a
newly emerging area. Sumner 2008 is a review article that provides an overview of the decreasing number of policy changes favoring FDI
in developing countries after 2000. Bernardi, et al. 2006 discusses the problems of substantially higher statutory corporate tax rate for
foreign enterprises in India, which is 40 percent. The authors argue that fiscal reforms need to be followed by market liberalization and also
indicate that the vague position of regulatory authorities seems problematic to global investors. Prabhash Ranjan’s chapter in Bath and
Nottage 2011 mentions that Vodafone’s transfer pricing controversy and the Pohang Iron & Steel Company (POSCO)’s steel project
dispute are the well-known regulatory conflicts in FDI to India, although the two projects are discussed at the national level rather than at
the international investment agreement (IIA) level that is more susceptible to the international practice of law provision. Ranjan points out
that India is unable to deal with the regulatory conflicts through arbitral jurisprudence due to the absence of such law involving Indian IIAs.
Puvimanasinghe 2007 answers a central research question of how public international law can serve a medium for the advancement of
economic development while simultaneously protecting and promoting human rights and conserving the environment in the context of
foreign direct investment. Tikku 1998 discusses the relationship between the intellectual property rights (IPRs) regime and the level of FDI
inflows in the developing countries with the focus on India. In an interesting study of parliamentary debate on FDI, Satyanand 2015
presents that Indian ministers (e.g., industry minister and finance minister) are well aware of FDI policy even though they are less capable
of answering the questions from Members of Parliament about the detailed data and impact of sector-specific distribution and safeguards.
Since the parliamentary debate is one of the most significant FDI policymaking processes, it may be useful to learn the MPs’ particular
knowledge level on the subject. Academic Foundation 2004 shows how the government of India attempted to deregulate FDI policy in the
early 2000s to simplify the approval process for FDI projects.
Academic Foundation. Reports on Investment Approval and FDI in India. New Delhi: Academic Foundation, 2004.
Consists of several reports issued by the government of India in 2001 to examine the actual procedures for investment approvals and
implementation of projects. The reports include the report on reforming investment approval, the parliamentary standing committee report
on FDI, and the committee on a compilation of FDI in India.
Bath, Vivienne, and Luke Nottage, eds. Foreign Investment and Dispute Resolution Law and Practice in Asia. Abingdon, UK:
Routledge, 2011.
The thirteen chapters of the edited volume assess the patterns and issues in the substantive law and the policy environment that impact on
FDI flows in some select Asian countries. The book chapters also investigate international dispute resolution law and practice related to
FDI flows. Chapter 10 contributed by Prabhash Ranjan primarily discusses the object and purpose of Indian international investment
agreements. Ranjan’s chapter draws on India’s unsuccessful practice of balancing investment protection and regulatory power.
Bernardi, Luigi, Angela Fraschini, and Parthasarathi Shome. Tax Systems and Tax Reforms in South and East Asia. New York:
Routledge, 2006.
This volume deals extensively with tax systems and tax reform policy changes in six select Asian countries—China, India, Malaysia,
Thailand, Japan, and South Korea. Most of all chapters provide a comparative perspective on the subject including the case of India.
Chapter 5 especially discusses the effects of corporate taxation on FDI inflows to the Asian countries. For the detailed discussion on India’s
tax reforms, see chapter 7.
Puvimanasinghe, Shyami Fernando. Foreign Investment, Human Rights and the Environment: A Perspective from South Asia on
the Role of Public International Law for Development. Leiden, The Netherlands; and Boston: Martinus Nijhoff, 2007.
Based on the author’s doctoral thesis that is focused on the case of South Asia with particular attention to Sri Lanka. In the volume, non-
state actors like transnational corporations and nongovernmental organizations are stressed having a vital role in achieving sustainable
development while FDI projects take place.
Satyanand, Premila Nazareth. “What India’s MPs Want to Know about Foreign Direct Investment: An Analysis of Written FDI
Questions in Parliament (2 July 2009–21 February 2014).” Policy Brief 1 (2015): 1–8.
This policy brief is an analysis to see what kinds of questions were asked by the Members of Parliament (MPs) in India to political
executives during parliamentary meetings regarding FDI. It presents the specific interests of MPs toward FDI by parsing data collated
through the content analysis method. New Delhi: National Council of Applied Research.
Sumner, Andrew. “Foreign Direct Investment in Developing Countries: Have We Reached a Policy ‘Tipping Point’?” Third World
Quarterly 29.2 (2008): 239–253.
This article reviews literature extensively dealing with general policymaking processes in developing countries with the focus of FDI. It not
only discusses the decreasing number of policy changes favoring FDI in developing countries after 2000 but also analyzes the rationales
for the changing pattern. It hypothesizes that the rationales are new critical research, critical voices raised in international organizations,
and vocal leaders in developing countries against the FDI inflows.
Tikku, Anup. “Indian Inflow: The Interplay of Foreign Investment and Intellectual Property.” Third World Quarterly 19.1 (1998): 87–
113.
By introducing existing literature on the subject, Tikku stresses that the IPRs may not be an important factor in attracting FDI in general
except in high-tech industries in which IPRs are significant indicators for the foreign investors’ investment decision.
Institutional Variables II—Economic Cooperation and Regional Integration
Some other FDI studies dealing with the institutional variables look at economic cooperation and regional integration in South Asia. The
South Asian countries have attempted to enhance economic cooperation with the world and in the region for a couple of decades. The next
part of the discussion introduces some works focusing on how South Asian countries have reacted to the world economic order and
cooperation. The discussion will be followed in the next part by debates on the efforts of South Asian countries in the context of intra-South
Asia regional integration. The debates include how South Asian countries have developed the commerce and investment relationships and
what challenges they have encountered in the relationships.
South Asia and the World Economic Cooperation
The global economic environment has developed favoring liberalized trade and investment regimes as demonstrated in Büthe and Milner
2008. The efforts for economic integration might have anticipated a promotion of FDI in South Asia. However, many studies have presented
the challenges and slow development of regional cooperation in this part of the world. Pigato, et al. 1997 points out that South Asia is
vulnerable to external shocks since its developed industry is focused on textile and garment sectors. Papers in Pigato’s volume emphasize
the export price volatility in agricultural products and other commodity price swings, like that of oil. The authors argue that the poorly
diversified export base and dependence on oil imports increase the vulnerability of the regional economic conditions. Scollay’s and
Bhattacharyay’s papers in Rana 2012 pay attention to the weak economic relations between East Asia and South Asia. Jenkins and
Edwards 2006 discuss the significant increase of trade and FDI from India and China to the African countries.
Büthe, Tim, and Helen V Milner. “The Politics of Foreign Direct Investment into Developing Countries: Increasing FDI through
International Trade Agreements?” American Journal of Political Science 52.4 (2008): 741–762.
Argue that international trade agreements, for example, GATT/WTO, preferential trade agreements, promote FDI flows by reassuring
investors through an analysis of 122 developing countries from 1970 to 2000.
Jenkins, Rhys, and Chris Edwards. “The Economic Impacts of China and India on Sub-Saharan Africa: Trends and Prospects.”
Journal of Asian Economics 17 (2006): 207–225.
This paper examines the trends in trade and investments between the Asian Drivers, that is, China, and India, and Africa. It presents the
significant increase of trade and investment between the two parties after the 1990s. It also discusses the Asian drivers’ direct and indirect
impacts of trade and FDI on the African countries.
Pigato, Miria, Caroline Farah, Ken Itakura, Kwang Jun, Will Martin, Kim Murrell, and T. G. Srinivasan. South Asia’s Integration into
the World Economy. Washington, DC: The World Bank, 1997.
The volume is helpful to understand the financial integration and trade policy of South Asian countries especially in the 1980s and the
1990s. It also provides information about the patterns and sources of FDI inflows to the South Asian countries at that time.
Rana, Pradumna B., ed. Renaissance of Asia. Singapore and Hackensack, NJ: World Scientific, 2012.
This edited volume discusses the pattern of economic linkage and integration between South Asia and East Asia. Chapter 5 written by
Robert Scollay and Chapter 7 by Biswa Nath Bhattacharyay review the trade and investment relations between the two regions.
Intra-South Asia Regional Integration
By focusing on the intra-South Asia relationship, Chanda 2011 and Batra 2013 investigate the commerce and investment relationship
between South Asian countries extensively. Both books would be useful to understand the historical evolution of South Asian regional
integration. Especially, chapter 1 in Chanda 2011 discusses the evolution of the South Asian Free Trade Area (SAFTA) from South Asian
Association for Regional Cooperation (SAARC). Since one of the reasons to promote the SAFTA is to remove restrictions on intra-regional
investment flows, the paper would be useful. Burki 2011 pays more attention to a Pakistani’s narrative in the process of regional integration
building. Behera’s piece in Rahman, et al. 2012 provides a fresh point of view about how we need to look at non-state actors to analyze the
process of regional cooperation building. Mukherji’s two articles mainly deal with bilateral economic relations between select South Asian
countries. Mukherji 2000 explains how India’s FDI flows to Sri Lanka were encouraged after the bilateral trade agreement between the two
nations in 1998. Regarding India-Nepal’s bilateral trade and investment relationship, Mukherji 1998 describes how India’s Nepal-specific
investment policy introduced in 1997 enabled Indian firms to undertake investment projects in Nepal on a fast track basis.
Batra, Amita. Regional Economic Integration in South Asia: Trapped in Conflict? New York: Routledge, 2013.
Briefly reviews the FDI policy regime change in South Asian countries in chapter 3. It is helpful to see the correlation between the intra-
regional trade and FDI in South Asia. It discusses the role of non-tariff and other behind-the-border barriers in regional trade.
Burki, Shahid Javed. South Asia in the New World Order: The Role of Regional Cooperation. Abingdon, UK: Routledge, 2011.
Consists of eight chapters providing the sociopolitical context of select South Asian countries for regional integration. The author of this
book is the former finance minister of Pakistan. The book discusses the challenges and prospects of the region’s economic integration.
Chanda, Rupa. Integrating Services in South Asia: Trade, Investment, and Mobility. New Delhi: Oxford University Press, 2011.
The nine chapters of this book elaborate the regional integration of South Asian economies in five select service sectors, including
telecommunication, energy, tourism, health, and education. Although the papers focus on economic integration rather than FDI flows
between South Asian countries, chapter 1 is helpful to understand the brief history of regional integration efforts in South Asia regarding the
progression from the South Asian Association for Regional Cooperation (SAARC) to the South Asian Free Trade Agreement (SAFTA).
Mukherji, Indra Nath. “India’s Trade and Investment Linkages with Nepal: Some Reflections.” South Asian Survey 5.2 (1998): 183–
197.
Mukherji’s article analyzes India-Nepal’s trade and investment relationship in the 1990s. It suggests that the increase of India’s imports
from Nepal after 1993–1994 could be the result of the unilateral trade liberalization offered by India to Nepal. It also discusses India’s
investment in Nepal in the 1990s. It is helpful to understand the details of FDI flows to Nepal in the 1990s.
Mukherji, Indra Nath. “Indo-Sri Lanka Trade and Investment Linkages.” South Asia Economic Journal 1.1 (2000): 53–77.
This article explains how the India-Sri Lanka’s trade and investment relationship has evolved through the South Asian Preferential Trading
Agreement (SAPTA) in the 1990s. It deals with India’s increasing investment in Sri Lanka in the mid-1990s with the focus of Indian firms. It
is helpful to learn not only how Indian companies entered the Sri Lankan market but also how investment policy supported India’s FDI flows
to Sri Lanka in the 1990s.
Rahman, S. H., S. Khatri, and H. P. Brunner. Regional Integration and Economic Development in South Asia. Cheltenham, UK:
Edward Elgar, 2012.
Consists of eight chapters investigating the regional cooperation in South Asia for its industrial growth and the enhancement of public
goods. Chapter 1 written by Navnita Chadha Behera provides an analysis of various stakeholders such as governments, the private sector,
and civil society, in making South Asian economic integration work. Given that bilateral and multilateral trade agreements promote FDI
flows, the chapter may be useful to understand the sociopolitical factors that may affect the efficient operation of regional integration in
South Asia.
Economic Variables
Many studies have taken economic factors as independent variables to explain the pattern of FDI flows to South Asian countries. The
economic variables can be categorized into largely two areas. The first area deals with discussions on the nexus between liberalization,
FDI, and economic growth. The second area of economic variables affecting FDI includes discussions on the relationship between market
size, infrastructure, exchange rate, import and export, financial crises, and the level of FDI flows. The economic factors introduced in this
section may be selective, since there are a large number of studies examining the correlation between diverse economic variables and the
level of FDI flows.
Liberalization-FDI-Growth Nexus
De Mello 1997 and Rana and Dowling 2009 provide an overview of liberalization impact on FDI inflows in developing countries. Zakaria, et
al. 2014 and De Silva, et al. 2012 find that trade liberalization has a significant positive relation with FDI inflows in Pakistan and Sri Lanka
respectively. Nasir and Hassan 2011 also supports the positive relationship between FDI inflows and growth in South Asia. However,
Anwar and Basu’s paper in Siddiqui 2007 find that FDI can be both good and bad for host countries. Chakraborty and Nunnenkamp 2008
carefully concludes that policymakers should be knowledgeable about the quality of FDI projects and the effects of FDI inflows on the local
economy since their sector-specific data analysis shows that booming FDI in the services sector in the post-reform period may not be
helpful for India’s economic growth.
Chakraborty, Chandana, and Peter Nunnenkamp. “Economic Reforms, FDI, and Economic Growth in India: A Sector Level
Analysis.” World Development 36.7 (2008): 1192–1212.
Authors examine the growth impact of FDI inflows in differing sectors, for example, primary, secondary, and tertiary sectors, by estimating a
vector error correction model that emanates from the co-integrated relationship between the variables. They found that the growth effects
of FDI in India are largely limited to the manufacturing sector because FDI stocks and output mutually reinforce in the long run.
De Mello, Luiz R., Jr. “Foreign Direct Investment in Developing Countries and Growth: A Selective Survey.” Journal of
Development Studies 1.34 (1997): 1–34.
De Mello’s article investigates the correlation between FDI inflows and economic growth in host countries focusing on developing countries.
Its analysis draws on the impact of FDI on output growth and technology transfer. It concludes that the growth-FDI nexus is sensitive to
country-specific determinants by reviewing extensive literature on the field.
De Silva, Nirodha, Jaime Malaga, and Jeff Johnson. “Trade Liberalization, Free Trade Agreements, and Economic Growth: The
Case of Sri Lanka.” Journal of International Agricultural Trade and Development 8.2 (2012): 241–257.
This article examines the correlation between trade liberalization and economic growth in Sri Lanka by analyzing data for the period of
1960 to 2010. It found that trade openness, investment, interest rates, and free trade agreements have significant relations with Sri Lanka’s
economic growth. It shows that the trade policy reforms encouraged FDI flows to Sri Lanka and the privatization of state-owned firms by the
end of the 1990s in the country.
Nasir, Zafar Mueen, and Arshad Hassan. “Economic Freedom, Exchange Rates Stability, and FDI in South Asia.” Pakistan
Development Review 50.4 (Winter 2011): 423–433.
This brief article argues that the factor of economic freedom for the period 1995 to 2008 has an active relation with FDI inflows to four
select South Asian countries, namely India, Pakistan, Bangladesh, and Sri Lanka, through a panel data analysis. It also insists that the
depreciation policy negatively affects the level of FDI inflows to the countries.
Rana, Pradumna B., and Malcolm Dowling. South Asia: Rising to the Challenge of Globalization. Singapore: World Scientific,
2009.
Offers an overview of progress, impact, and the potential for globalization in South Asia. The introduction of the volume is helpful to learn
the brief history of economic reforms in the South Asian countries. Chapter 2 discusses in detail the region’s global integration with a focus
on FDI inflows to the area. The chapter analyzes a positive relationship between openness and economic growth and between FDI inflows
and growth.
Siddiqui, Anjum. India and South Asia: Economic Developments in the Age of Globalization. Armonk, NY: Sharpe, 2007.
The eighteen chapters of this edited volume extensively discuss the political economy and financial governance of South Asian countries.
Chapter 7 in particular, written by Sajid Anwar and Parikshit K Basu, reviews the correlation between FDI inflows and economic growth in
Asian countries with a particular focus on India. They conclude that FDI could be both an engine for growth and a primary source of
financial crisis.
Zakaria, Muhammad, Hasnain A. Naqvi, Bashir A. Fida, and Syed Jawad Hussain. “Trade Liberalization and Foreign Direct
Investment in Pakistan.” Journal of Economic Research 19.3 (2014): 225–247.
Empirically examines the impact of trade liberalization on FDI inflows in Pakistan by using quarterly data for the period 1972 to 2010. The
article discusses liberalization and other factors such as human and physical capital, capital returns, infrastructure development, terms of
trade and urbanization, trade openness, and a flexible exchange rate that are influential on the FDI inflows in Pakistan.
Market Size, Infrastructure, Exchange Rate, Import-Export, Crises, and FDI
Sahoo 2012 widely examines the economic determinants of FDI inflows to South Asian countries. He found that the major determinants of
FDI in this region are market size, labor force, infrastructure, trade openness, macroeconomic stability, and economic reforms. Eswar S.
Prasad’s chapter in Eichengreen and Park 2012 asserts that emerging market economies (EMEs), including India and China, have now
accumulated a large stock of reserves to protect themselves against the reversals of capital flows. Prasad indicates that the financial
structure of EMEs’ external liabilities has also changed from vulnerability to stability through the maintenance of foreign reserves. Some of
the papers in Rajan 2012 and Tolentino 2010 discuss the relationship between external shocks and FDI flows. Hogue and Yusop 2010
explains that Bangladesh tends to control the foreign exchange market although it has adopted a floating exchange rate policy. They point
out that the government is likely to maintain the higher level of foreign exchange reserve for macroeconomic stability by controlling the
release of foreign currency for import payments. Bastola and Sapkota 2015 examines the increase of imports in the Nepalese economy.
Tolentino 2010 reviews the domestic determinants of FDI flows from China and India extensively and finds that there is a relation between
India’s FDI outflows and economic shocks.
Bastola, Umesh, and Pratikshya Sapkota. “Causality between Trade and Economic Growth in a Least Developed Economy:
Evidence from Nepal.” Journal of Developing Areas 49.4 (2015): 197–213.
One of a very few articles discussing the political economy of Nepal. It examines the causal relationship between real income, exports, and
imports, by using the Autoregressive Distributed Lag (ARDL) approach. It finds that the rapid growth of Nepalese imports was closely
related to sluggish economic growth. It suggests that the Nepalese government needs to support the active participation of the private
sector for trade and investment. In this regard, the low level of FDI flows to Nepal can be understood.
Eichengreen, Barry, and Bokyeong Park, eds. The World Economy after the Global Crisis: A New Economic Order for the 21st
Century. Singapore: World Scientific, 2012.
The eight chapters of this edited volume discuss various issues of financial reforms in Asia after the global financial crisis of 2008–2009.
Chapter 6, contributed by Eswar S Prasad, elaborates the challenges of emerging markets like China and India. Prasad conceptualizes
“decoupling” phenomena to explain the greater resilience of EMEs to advanced country shocks.
Hogue, Mohammad Monjurul, and Zulkomain Yusop. “Impacts of Trade Liberalization on Aggregate Import in Bangladesh: An
ARDL Bounds Test Approach.” Journal of Asian Economics 21.1 (2010): 37–52.
Using the Autoregressive Distributed Lag (ARDL) “Bound Test” approach with annual time series data from 1972–1973 to 2004–2005, the
article estimated the impacts of trade liberalization on the total imports of Bangladesh. It found that price, income, foreign exchange
reserves, import duty rate, and trade liberalization significantly influence import demand in Bangladesh. It suggests that the government
should pursue a consistent policy to promote both consumption and investment.
Rajan, Ramkishen Sundara. Exchange Rates and Foreign Direct Investment in Emerging Asia. New York: Routledge, 2012.
This volume deals extensively with the exchange rate regimes and FDI inflows to select Asian countries. The ten chapters include
interesting research questions that explain how Asian countries manage capital flows and external shocks; and how outward and inward
FDI flows have helped the growth of Asian countries. Notably, chapters 2, 3, and 9 deal with South Asian countries closely.
Sahoo, Pravakar. “Determinants of FDI in South Asia: Role of Infrastructure, Trade Openness, and Reforms.” Journal of World
Investment & Trade 13 (2012): 256–278.
Investigates the determinants of FDI flows to four countries in South Asia—India, Pakistan, Sri Lanka, and Bangladesh—by using panel
data for the time period 1985–2006. The article discusses GDP growth, improvements in infrastructure, cheap and abundant labor force,
trade openness, and the high rate of return attract FDI in South Asia.
Tolentino, Paz Estrella. “Home Country Macroeconomic Factors and Outward FDI of China and India.” Journal of International
Management 16.2 (2010): 102–120.
Revisits several economic factors including openness, interest rate, and the exchange rate of China (1982–2006) and India (1980–2006),
applying a vector autoregressive model to analyze a Granger causality. It concludes that there is no definite relation between the select
macroeconomic factors and FDI outflows from both countries; however, India’s FDI outflows responded to a shock in any of the select
variables.
Multinational Enterprises in South Asia
The OECD Guidelines for multinational enterprises (MNEs) offer recommendations for MNEs to contribute to host economies’ sustainable
development while they embark upon FDI projects. The guidelines address significant issues such as human rights, employment, industrial
relations, environment, and consumer interests that MNEs need to consider for building mutual confidence with host countries’
governments and societies. OECD 2011 is the most recently updated version of the OECD Guidelines. Other special readings in this
section of MNEs deal with the pattern of FDI flows to South Asia or from South Asia by examining the behaviors of MNEs. This subfield of
FDI studies considers the firm-level analysis significant as the thought of the pioneering FDI theorists discussed above (see Classical
Readings on FDI). For example, Nayak 2008 investigates several foreign firms for which investment projects have been successful in India.
Athukorala 1995 argues the need for export-oriented firms in Sri Lanka as a growth engine. Guha and Ray’s paper in Srinivasan 2002
compares the types of FDI from China and India. Ye 2014 elaborates on the sources of FDI liberalization in China and India from a
sociological perspective. It argues for the significance of entrepreneurial diaspora as a source of policy change, especially based in the
United States and other developed countries, rather than domestic political institutions. Anwar 2014 provides the details of Indian firms that
have embarked upon FDI projects in differing African countries. In Anwar’s article, Vedanta in Zambia, Tata in Kenya, and Arcelor Mittal
Steel in Liberia are discussed. Gopalan and Hattari’s work in Rajan, et al. 2011 discusses the tendency for mergers and acquisitions
(M&As) by Indian firms in the world market.
Anwar, Mohammad Amir. “Indian Foreign Direct Investments in Africa: A Geographical Perspective.” Bulletin of Geography 26
(2014): 35–49.
This article presents a geographical account of contemporary Indian FDI flows to Africa. It is well updated with the recent FDI projects
undertaken in African countries by Indian firms.
Athukorala, Premachandra. “Foreign Direct Investment and Manufacturing for Export in a New Exporting Country: The Case of
Sri Lanka.” World Economy 18.4 (1995): 543–564.
This article discusses the FDI policy regime and pattern changes in Sri Lanka from the 1950s to the mid-1990s. It pays considerable
attention to the export-oriented foreign firms that have contributed to Sri Lanka’s economic growth. By reviewing the rise and fall of import-
substituting industrial strategies and political instability over a period, the article argues that Sri Lanka needs to attract foreign investment
by creating a conducive investment climate in vertically integrated high-tech industries rather than in the sector of labor-intensive consumer
goods.
Nayak, Amar K.J.R. Multinationals in India: FDI and Complementation Strategy in a Developing Country. New York: Palgrave
Macmillan, 2008.
Nayak’s book analyzes key determinants of foreign firms to make FDI projects successful in Indian industry by carefully looking at several
MNEs, including British American Tobacco, Unilever, and Suzuki Motor Corporation. It found that the three companies have a similar
pattern in selling, primary business, and complementary activities by ingeniously integrating their business goals with India’s national
objectives and strategically diluting their equity with Indian equity. The principal method used in the book is regression analysis.
OECD. OECD Guidelines for Multinational Enterprises 2011 Edition. Paris: OECD, 2011.
These guidelines are the only multilaterally agreed and comprehensive code of business conduct based on recommendations addressed
by governments to MNEs. The governments are those of which a large share of international direct investment originates. The original
version of the guidelines was part of the 1976 OECD Declaration on International Investment and Multinational Enterprises and the 2011
amended guidelines add a human rights chapter.
Rajan, Ramkishen S., Sasidaran Gopalan, and Rabin Hattari. Crisis, Capital Flows and FDI in Emerging Asia. New Delhi: Oxford
University Press, 2011.
The ten chapters of this volume discuss extensively the financial crises and FDI flows in Asia. Chapter 6, contributed by Sasidaran
Gopalan and Rabin Hattari, deals especially with India’s FDI. Gopalan and Hattari carefully look at the increase of FDI flows from India to
other countries with the focus of M&As.
Srinivasan, T.N., ed. Trade, Finance, and Investment in South Asia. New Delhi: Social Science Press, 2002.
The nine chapters of this edited volume discuss the impact of changing global trade policies on South Asian countries and intra–South Asia
relations in trade, investment, and regional cooperation. Chapter 7, written by Ashok Guha and Amit S Ray, offers a comparative
perspective on India and China in multinational FDI and expatriate FDI. In chapter 8, Jayasuriya and Weerakoon examine whether trade
and FDI have a correlation in the South Asian region.
Ye, Min. Diasporas and Foreign Direct Investment in China and India. New York: Cambridge University Press, 2014.
This book elaborates the sources of FDI liberalization in China and India from a sociological perspective. The book takes the social network
as a variable to produce the preconditions for diaspora’s return to India and China in the realm of FDI. It found that India’s FDI regime
change was slowed by domestic business that feared competing with foreign firms, compared with China where active diaspora networks
helped to expand FDI policy change.
Socio-Political Conflicts in FDI Flows in South Asia
South Asian countries have often observed conflicts between global investors and local citizens or local governments over the
environment, employment, human rights, and industrial relations issues. Levien 2013 discusses the theory of land dispossession, focusing
on India. Levien 2015 also depicts the sociopolitical problems of land acquisition in the process of FDI flows in India. Cotula 2013
addresses the validity and limitation of Polanyi’s interpretation in the transition of international investment law, by arguing that international
investment law is applied in various ways in the land conflicts of different regions. This article will be useful in understanding why the issues
of land rush are significant, especially in the global South where large land deals usually dispossess the rural poor and destroy
sociocultural values. Bardhan 2015 deals with some of the important issues that emerged through the Land Acquisition Act in India in 2013.
Chakravorty 2013 argues that the states should be the main actors in tackling the problems and conflicts of land acquisition. Chakravorty
highlights the fact that the substantial part of land acquisition in India has been done for public purposes rather than for the private sector.
Papers in Mathur 2011 deal with the policy concerns of resettlement and rehabilitation extensively. Debashis Chakraborty’s chapter in
Mukherjee and Chakraborty 2012 describes how environmental governance operates in India by looking at the relationship between FDI
inflows and environmental degradation.
Bardhan, Pranab. “Variations in Relations of Capital (Over Time and Across Regions) in India.” Keynote Speech in the 10th ISAS
Annual International Conference on Politics and Economics of Land in South Asia, 29–30 October 2015. Singapore: Institute of
South Asian Studies, National University of Singapore.
Bardhan’s keynote speech delivered at the 10th ISAS Annual Conference on “Politics and Economics of Land in South Asia” discusses the
regional variations in state-capital relations. It deals with several key issues regarding investment projects. The issues include the capital-
labor relations, increasing political fragmentation, rising inequality, and populist pressures.
Chakravorty, Sanjoy. The Price of Land: Acquisition, Conflict, Consequence. New Delhi: Oxford University Press, 2013.
Chakravorty’s book consists of three parts: the present, past, and future of land markets in India. The first part discusses the types of land
conflicts and issues focused on the price of land and political actors involved in the land acquisition process. Four chapters in the second
part investigate the history of land policies, land reforms, and land acquisition law including resettlement and rehabilitation policies. The last
two chapters of the third part estimate the land markets of India in the future with the state-level concerns regarding the price of land.
Cotula, Lorenzo. “The New Enclosures? Polanyi, International Investment Law, and the Global Land Rush.” Third World Quarterly
34.9 (2013): 1605–1629.
Given that land rights remain embedded in cultural, social, and political relations in many societies, Cotula discusses the role of
international investment law, particularly human rights law, in the debate over the global land rush in the context of “double movement.”
Karl Polanyi initially developed the concept of double movement in his classic work, The Great Transformation, illustrating the tension
between commodifying the means of production––for example, land and labor––and restoring social embeddedness.
Levien, Michael. “The Politics of Dispossession: Theorizing India’s ‘Land Wars.’” Politics & Society 41.3 (2013): 351–394.
This paper attempts to theorize the land politics in India by depending on David Harvey’s framework of “accumulation by dispossession.” It
discusses several theoretical perspectives on how to analyze the land conflicts occurring in India. By reviewing alternative views, the paper
describes the politics of dispossession, where farmers and the state confront struggles.
Levien, Michael. “Social Capital as Obstacle to Development: Brokering Land, Norms, and Trust in Rural India.” World
Development 74 (2015): 77–92.
Levien’s article takes social capital as a variable to explain farmers’ capturing profits in the process of land acquisition in Special Economic
Zones through a case study of Rajasthan in India. It argues that social capital is seen as an aspect of social inequality that blocks inclusive
development. Unlike the conventional understanding of social capital as a valuable asset for development, this article sees it as an
obstacle based on Bourdieu’s theory of social capital.
Mathur, Hari Mohan, ed. Resettling Displaced People: Policy and Practice in India. New Delhi: Routledge, 2011.
The fifteen chapters of this edited volume provide the critical issues of resettlement and rehabilitation policy that is deeply related to FDI
projects. The chapters discuss threats of massive displacement from the rapid increase in FDI inflows to India. The contributors to the
volume represent a broad background including government, think-tanks, universities, civil society, and international development
agencies.
Mukherjee, Sacchidananda, and Debashis Chakraborty, eds. Environmental Scenario in India: Successes and Predicaments.
Abingdon, UK: Routledge, 2012.
The thirteen chapters of this edited volume discuss the environmental issues for India’s sustainable development. Chapter 13, contributed
by Debashis Chakraborty, primarily discusses the relationship between FDI and environmental degradation. It is helpful to learn how
environmental governance works in India.
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7/4/2017 Politics of Foreign Direct Investment in South Asia - Political Science - Oxford Bibliographies

Politics of Foreign Direct Investment in South

LAST MODIFIED: 27 OCTOBER 2016

The World Bank. World Bank Indicators.

The World Bank. Doing Business.

Classical Readings on FDI

Domestic Determinants of South Asian FDI Flows

Political Regime Changes, Political Elites, and Economic Reforms in India

Institutional Variables I—Law and Policy

Institutional Variables II—Economic Cooperation and Regional Integration

South Asia and the World Economic Cooperation

Intra-South Asia Regional Integration

Market Size, Infrastructure, Exchange Rate, Import-Export, Crises, and FDI

Multinational Enterprises in South Asia

Socio-Political Conflicts in FDI Flows in South Asia

Copyright © 2017. All rights reserved.

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