Social and cultural factors in FDI flows: Evidence from the Indian states.

Sathe, Shraddha and Handley-Schachler, Morrison (2006) Social and cultural factors in FDI flows: Evidence from the Indian states. World Review of Entrepreneurship, Management and Sustainable Development, 2 (4). pp. 323-334. ISSN 1746-0573


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Abstract Foreign Direct Investment is of increasing importance for both developing and industrialized countries, with the UN estimating total FDI flows at $560 billion in 2003 (UNCTAD 2004), of which an increasing share went to developing countries. These investment flows can have a major impact on the economic environment and competitiveness of developing countries. Yet they remain uneven, with some countries and some regions within countries attracting more FDI in relation to their population and economic activity than others. This study examines the possible cultural factors affecting FDI in different regions of one large emerging economy, namely India, in terms of the varying religious, social and political backgrounds of the different states. Although a substantial amount of literature exists in relation to the effects of culture on business practice, less has been published on the effects of culture on international trade and investment. In addition, culture is often quite narrowly defined in terms of implicit psychological attitudes, with far less attention being paid to the effects of explicit cultural features such as religion and political philosophy or to sociological factors such as urbanization and education levels, which may have a crucial effect on the ability of countries and regions to attract FDI and on the uses to which FDI inflows are put. This study considers the relationship between a wide range of cultural factors and levels of FDI in the 28 Indian states. [math mode missing closing $]

Item Type: Article
Print ISSN: 1746-0573
Electronic ISSN: 1746-0581
Uncontrolled Keywords: Foreign Direct Investment; India; Culture; Urbanization; Economic Development
University Divisions/Research Centres: The Business School > School of Accounting, Financial Services and Law
Dewey Decimal Subjects: 300 Social sciences > 300 Social sciences, sociology & anthropology > 306 Culture & institutions
300 Social sciences > 330 Economics > 337 International economics
300 Social sciences > 330 Economics > 332 Financial economics
Library of Congress Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HJ Public Finance
Item ID: 2463
Depositing User: M Handley-Schachler
Date Deposited: 19 Jan 2009 11:56
Last Modified: 03 Apr 2013 11:02

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