Multinationals and Spillover: A Study of Post-reform Indian Industry

Murali Patibandla, Amal Sanyal

    Research output: Working paperResearch

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    The paper looks for empirical evidence of spillover from multinational corporations who entered Indian industries since her recent economic reforms. Spillover in an industry, when it exists, has been empirically identified by temporal increase of the efficiency of local firms induced by the higher efficiency of MNCs in that industry. Efficiency has been estimated for individual firms by their closeness to the frontier production function of that industry. The study shows that in only two out of the nine industries studied, the hypothesis of spillover can not be rejected. In one other industry there is evidence of increase of efficiency as a result of competition rather than a direct spillover.
    Original languageEnglish
    Place of PublicationFrederiksberg
    PublisherDepartment of International Economics and Management, Copenhagen Business School
    Number of pages25
    Publication statusPublished - 1999
    SeriesWorking Paper / Department of International Economics and Management, Copenhagen Business School


    • Multinational corporations
    • Local firms
    • Technology spillovers
    • Indian industries

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