摘要：This paper examines the technology spillover from foreign direct investment (FDI) and subsequently, determines the factors for FDI - participation in Indian manufacturing industries. The result based on a two - equation model facilitat ing the link between labor productivity and foreign presence suggests that foreign presence play s an important role in the diffusion of technology from foreign firms to domestic firms, provided the recipient firms have the capacity to absorb and adopt the for eign technology. Furthermore, the results suggest that industries experiencing decline in the tariff cost exhibit stronger growth in labor productivity. Finally, we find that large domestic market size and highly productive domestic sectors , are likely to attract more FDI from abroad.
关键词：Foreign Direct Investment; Technology Spillover; Manufacturing Industries
