CEU Electronic Theses and Dissertations, 2017
| Author | Singhi, Darpan |
|---|---|
| Title | Revamping Institutions: Understanding What Drives FDI in the Developing Economies |
| Summary | This thesis dissects what constitutes as attractors of “quality” Foreign Direct Investments (FDI) in developing countries, arguing that institutional changes are essential for facilitating an environment which attractors investors. It is argued that while the period immediately following liberalization and opening-up of the economy is concerned with merely bringing in investors in manufacturing and primary sectors, the larger focus must be to diversify opportunities for investments in the economy. It is further argued that creation of institutions to support diversification--specifically those that help imbibe skills in domestic labor across geographic regions of the country. In order to assess this hypothesis we review the case of India and China - the two largest developing economies. The case of China highlights that volume of investments does not guarantee quality investments, when accompanied by lack of sector and geographic diversity has tendencies of slowing down FDI inflow rates. In contrast is India-which has invested significantly in skills training to create a workforce that is employable across sectors. The thesis explores various factors that have contributed to decline of investments in China and upticks in India. |
| Supervisor | Csaba, Laszlo |
| Department | International Relations MA |
| Full text | https://www.etd.ceu.edu/2017/singhi_darpan.pdf |
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