BUSINESS SCHOOL
Ahmedabad
Foreign Capital
Kalika Bansal
Amity Global Business School,
Ahmedabad.
AMITY GLOBAL
BUSINESS SCHOOL
Ahmedabad
a high level of
investment
The technological gap
Exploitation of natural resources
Undertaking the initial risk
Development of basic economic
infrastructure
The foreign exchange gap
2
AMITY GLOBAL
BUSINESS SCHOOL
Ahmedabad
Components
Two
main forms
Foreign aid
3
AMITY GLOBAL
BUSINESS SCHOOL
Ahmedabad
Foreign Aid
Includes
AMITY GLOBAL
BUSINESS SCHOOL
Ahmedabad
discrimination between
foreign and domestic capital
Full
AMITY GLOBAL
BUSINESS SCHOOL
Ahmedabad
AMITY GLOBAL
BUSINESS SCHOOL
Ahmedabad
Sectoral Composition
Largest
AMITY GLOBAL
BUSINESS SCHOOL
Ahmedabad
Determinants of FDI
inflows:
market size (income levels and
population)
extent of urbanization
quality of infrastructure
policy factors such as
tax rates,
investment incentives,
performance requirements.
8
AMITY GLOBAL
BUSINESS SCHOOL
Ahmedabad
of Output
Employment Generation
Balanced Regional Development
Export Expansion
Technological spillovers
Augmenting Capital Stock
9
AMITY GLOBAL
BUSINESS SCHOOL
Ahmedabad
FDI
10
AMITY GLOBAL
BUSINESS SCHOOL
Ahmedabad
AMITY GLOBAL
BUSINESS SCHOOL
This
Ahmedabad
AMITY GLOBAL
BUSINESS SCHOOL
Ahmedabad
Other
AMITY GLOBAL
BUSINESS SCHOOL
Ahmedabad
The
However,
AMITY GLOBAL
BUSINESS SCHOOL
Ahmedabad
Besides
AMITY GLOBAL
BUSINESS SCHOOL
Ahmedabad
AMITY GLOBAL
BUSINESS SCHOOL
Ahmedabad
raising
AMITY GLOBAL
BUSINESS SCHOOL
This
Ahmedabad
AMITY GLOBAL
BUSINESS SCHOOL
Key issues?
Ahmedabad
Capital
Displacement
of Indigenous
production
Extent
of technology transfer
Income
distribution
19