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Japanese production networks in India

  • This paper examines the determinants of subnational location choice of Japanese multinational enterprises (JMNEs) in India to investigate whether or not conventional investment behaviour as ‘foot-loose’ and one-off investments has given way to an agglomeration logic as Japanese foreign direct investment has intensified. Using geographic information system analysis of investment project numbers, we find that Japanese MNE behaviour in India is evolving, with complementing but complex subnational interactions of economic, institutional and infrastructure factors serving as strong determinants of location choice consistently across key phases of India’s liberalization. We argue that Japanese investment decisions in India have followed a self-reinforcing dynamic whereby prior investments indeed attract further investment.

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Author:Sierk A. Horn, Adam R. Cross
Parent Title (English):Asia Pacific Business Review
Subtitle (English):Spatial distribution, agglomeration and industry effects
Document Type:Article
Year of publication:2016
Release Date:2018/11/22
Volume:22. Jg.
Issue:H. 4
First Page:612
Last Page:640
Open Access?:nein
Peer review:wiss. Beitrag, peer-reviewed
Publicationlist:Horn, Sierk