1. – Indian Institute Of Management, Lucknow, Uttar Pradesh, India.
| Received
24-Aug-2017 |
Accepted
- |
Published
24-Aug-2017 |
Abstract
This paper explores the relationship
between Foreign Direct Investment
(FDI) and firms productivity
by reviewing the literature
over the period 1974 - 2013. In
majority of cases over the years,
author concludes that FDI does
promote total factor productivity
as well as labor productivity except
in two instances, viz. family-
owned enterprises and firms
that employ unskilled labor. In
the case of family-owned firms,
improvement in productivity was
insignificant due to their riskaverse
approach and constrained
strategic aggressiveness.
In those cases where unskilled
labor were employed, labor productivity
was seen to be unchanged.
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