Vinish Kathuria

Bio: Vinish Kathuria is an academic researcher from Indian Institutes of Technology. The author has contributed to research in topics: Productivity & Total factor productivity. The author has an hindex of 23, co-authored 96 publications receiving 1991 citations. Previous affiliations of Vinish Kathuria include University of Delhi & University of Gothenburg.

Productivity spillovers from technology transfer to Indian manufacturing firms

Abstract: The present paper employs techniques from stochastic production frontier and panel data literature to test a spillover hypothesis for large sized firms that ‘presence of foreign-owned firms and foreign technical capital stock in a sector leads to reduced dispersion in efficiency in the sector and fall is higher for the firms that invest in R&D activities’. Dispersion being a relative concept, it may still fall if both the leading foreign firm and domestic firms show fall in technical efficiency over the period and the fall for the leader is higher and vice versa. Given the focus of the study, where concern is for the learning by the domestic firms, the study tries to get around with the problem partially, by testing the hypothesis for those local firms that have shown productivity improvement over the period. Results suggest that foreign-owned firms are close to the frontier in 13 of the total 26 sectors studied. Spillovers result for these 13 sectors indicate that there exist negative spillovers from the presence of foreign firms in the sector, but available foreign technical capital stock has a positive impact. Interesting differences emerge when the sample is bifurcated into scientific and non-scientific subgroups. Results for the scientific subgroup indicate that the indirect gains or spillovers are not automatic consequence of foreign firm's presence, but they depend to a large extent on the efforts of local firms to invest in learning or R&D activities so as to decodify the spilled knowledge. On the other hand, the evidence of spillovers to non-scientific non-FDI firms is not very strong. Copyright © 2000 John Wiley & Sons, Ltd.

Liberalisation, FDI, and productivity spillovers—an analysis of Indian manufacturing firms

Abstract: The objective of the intensification of reforms in India's trade, technology and industry policies in 1991 was to make Indian industry competitive. In the light of these attempted changes, the present paper tested two hypotheses, namely (a) whether liberalisation has improved the productivity of local firms; and (b) whether the spillovers from technology transfer have increased in the liberal regime. To test these, techniques from panel data and stochastic production frontier were employed on 487 firms belonging to 24 three-digit manufacturing industries for the period 1989--90 to 1996--97. The results showed that after liberalisation, the productivity of Indian industry, especially the foreign owned firms, has improved. The econometric results suggested that only 'scientific' non-FDI firms have benefited from the liberalisation. For the 'non-scientific' firms, the impact is found to be productivity depressing. With respect to spillovers, only those domestic firms, which invested in R&D to decode the spilled knowledge, could benefit. Copyright 2002, Oxford University Press.

Foreign firms, technology transfer and knowledge spillovers to Indian manufacturing firms: a stochastic frontier analysis

Abstract: This paper uses techniques from a stochastic production frontier (i.e., the best practice technology used in the industry vis-a-vis average practised technology) and panel data literature to test for the spillover hypothesis that ‘presence of foreign-owned firms and disembodied technology import in a sector leads to higher productivity growth for domestic firms’. The study uses panel data for 368 medium and largesized Indian manufacturing firms for the period 1975–1976 to 1988–1989. The results indicate that there exists positive spillovers from the presence of foreign-owned firms but the nature and type of spillovers vary depending upon the industries to which the firms' belong. There exist significant positive spillovers for the domestic firms belonging to the ‘scientific’ subgroup provided the firms themselves possess significant R&D capabilities. However, for the ‘non-scientific’ subgroup presence of foreign firms itself forces the local firms to be more productive by inducing greater competition. How...

The Economic Institutions of Capitalism

Abstract: The 2008 crash has left all the established economic doctrines - equilibrium models, real business cycles, disequilibria models - in disarray. Part of the problem is due to Smith’s "veil of ignorance": individuals unknowingly pursue society’s interest and, as a result, have no clue as to the macroeconomic effects of their actions: witness the Keynes and Leontief multipliers, the concept of value added, fiat money, Engel’s law and technical progress, to name but a few of the macrofoundations of microeconomics. A good viewpoint to take bearings anew lies in comparing the post-Great Depression institutions with those emerging from Thatcher and Reagan’s economic policies: deregulation, exogenous vs. endoge- nous money, shadow banking vs. Volcker’s Rule. Very simply, the banks, whose lending determined deposits after Roosevelt, and were a public service became private enterprises whose deposits determine lending. These underlay the great moderation preceding 2006, and the subsequent crash.

The Oxford Handbook of Innovation

Abstract: This handbook looks to provide academics and students with a comprehensive and holistic understanding of the phenomenon of innovation. Innovation spans a number of fields within the social sciences and humanities: Management, Economics, Geography, Sociology, Politics, Psychology, and History. Consequently, the rapidly increasing body of literature on innovation is characterized by a multitude of perspectives based on, or cutting across, existing disciplines and specializations. Scholars of innovation can come from such diverse starting points that much of this literature can be missed, and so constructive dialogues missed. The editors of The Oxford Handbook of Innovation have carefully selected and designed twenty-one contributions from leading academic experts within their particular field, each focusing on a specific aspect of innovation. These have been organized into four main sections, the first of which looks at the creation of innovations, with particular focus on firms and networks. Section Two provides an account of the wider systematic setting influencing innovation and the role of institutions and organizations in this context. Section Three explores some of the diversity in the working of innovation over time and across different sectors of the economy, and Section Four focuses on the consequences of innovation with respect to economic growth, international competitiveness, and employment. An introductory overview, concluding remarks, and guide to further reading for each chapter, make this handbook a key introduction and vital reference work for researchers, academics, and advanced students of innovation. Contributors to this volume - Jan Fagerberg, University of Oslo William Lazonick, INSEAD Walter W. Powell, Stanford University Keith Pavitt, SPRU Alice Lam, Brunel University Keith Smith, INTECH Charles Edquist, Linkoping David Mowery, University of California, Berkeley Mary O'Sullivan, INSEAD Ove Granstrand, Chalmers Bjorn Asheim, University of Lund Rajneesh Narula, Copenhagen Business School Antonello Zanfei, Urbino Kristine Bruland, University of Oslo Franco Malerba, University of Bocconi Nick Von Tunzelmann, SPRU Ian Miles, University of Manchester Bronwyn Hall, University of California, Berkeley Bart Verspagen , ECIS Francisco Louca, ISEG Manuel M. Godinho, ISEG Richard R. Nelson, Mario Pianta, Urbino Bengt-Ake Lundvall, Aalborg

Much Ado About Nothing? Do Domestic Firms Really Benefit from Foreign Investment?

Abstract: Many governments offer significant inducements to attract inward investment, motivated by the expectation of spillover benefits. This paper begins by reviewing possible sources of spillovers. It then provides a comprehensive evaluation of the empirical evidence on productivity, wages and exports spillovers in developing, developed and transitional economies. Although theory can identify a range of possible spillover channels, robust empirical support for positive spillovers is hard to find. The reasons for this are explored and the paper concludes with a review of policy aspects.

Much ado about nothing? do domestic firms really benefit from foreign direct investment?

Abstract: Governments the world over offer significant inducements to attract investment, motivated by the expectation of spillover benefits to augment the primary benefits of a boost to national income from new investment. There are several possible sources of induced spillovers from foreign direct investment. This article evaluates the empirical evidence on productivity, wage, and export spillovers in developing, developed, and transition economies. Although theory can identify a range of possible spillover channels, robust empirical support for positive spillovers is at best mixed. The article explores the reasons and concludes with a review of policy aspects.

Multinational Companies and Productivity Spillovers: A Meta‐Analysis

Abstract: This paper presents a meta-analysis of the literature on multinational companies and productivity spillovers. By collecting information from a sample of published and unpublished papers on the impact of multinational presence on domestic productivity, we investigate whether certain aspects of the study design affect the results, and whether there is publication bias in the literature. Our findings show that some aspects of the empirical methods used, namely, how the presence of multinationals is defined, and whether cross-section or panel analysis is employed, may have an effect on the results. We also discover some evidence that there may be publication bias.