Sketching the Future Research Path of FDI in Developing Countries

  • Sarbajit Chaudhuri
  • Ujjaini Mukhopadhyay


In this book, attempts have been made to discuss many of the aspects in which FDI can interact with a host of factors and affect the recipient developing country; nonetheless, there still remain some issues that could not be captured within the purview of the book. This concluding chapter provides an outline of a few of them to enable more exhaustive future applied theoretical research in this area.


Informal Sector Child Labour Credit Market Foreign Capital Wage Inequality 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


  1. Aitken BJ, Harrison AE (1999) Do domestic firms benefit from direct foreign investment? Evidence from Venezuela. Am Econ Rev 89(3):605–618CrossRefGoogle Scholar
  2. Basu K (1998) Analytical development economics – the less developed economy revisited. Oxford University Press, DelhiGoogle Scholar
  3. Basu K, Bell C (1991) Fragmented duopoly: theory and applications to backward agriculture. J Dev Econ 36:259–281CrossRefGoogle Scholar
  4. Bose P (1998) Formal-informal sector interaction in rural credit markets. J Dev Econ 56:265–80CrossRefGoogle Scholar
  5. Blalock G, Gertler P (2005) Welfare gains from foreign direct investment through technology transfer to local suppliers. J Int Eco 74(2):402–421CrossRefGoogle Scholar
  6. Blomstrom M (1989) Foreign investment and spillovers. Routledge, London/New YorkGoogle Scholar
  7. Blomstrom M, Persson H (1983) Foreign investment and spillover efficiency in an underdeveloped economy: evidence from the Mexican manufacturing industry. World Dev 11(6):493–501, ElsevierGoogle Scholar
  8. Blomstrom M, Sjoholm F (1999) Technology transfer and spillovers: does local participation with multinationals matter?. Eur Econ Rev 43(4–6):915–923, ElsevierGoogle Scholar
  9. Chaudhuri S (1998) Inadequate formal credit and informal credit market in agriculture: a theoretical analysis. J Quant Econ 14(2):123–134Google Scholar
  10. Chaudhuri S (2000) Interactions between two informal sector lenders and interest rate determination in the informal credit market: a theoretical analysis. India Econ Rev 35(2)Google Scholar
  11. Chaudhuri S (2001) Interaction of formal and informal credit markets in backward agriculture: a theoretical analysis. Indian Econ Rev 36(2):411–428Google Scholar
  12. Chaudhuri S (2004) Some aspects of agricultural credit in a developing economy. Serials Publications, New DelhiGoogle Scholar
  13. Chaudhuri S (2006) Pollution and welfare in the presence of informal sector: is there any trade-off? Keio Econ Stud 43(1):21–42Google Scholar
  14. Chaudhuri S (2011) Economic recession, skilled unemployment and welfare. Econ Model 28(3):1435–1440CrossRefGoogle Scholar
  15. Chaudhuri S, Gupta MR (1996) Delayed formal credit, bribing and the informal credit market in agriculture: a theoretical analysis. J Dev Econ 51:433–49CrossRefGoogle Scholar
  16. Chaudhuri S, Ghosh Dastidar K (2011) Corruption in a model of vertical linkage between formal and informal credit sources and credit subsidy policy. Econ Modell 28(6):2596–2599CrossRefGoogle Scholar
  17. Chaudhuri S, Mukhopadhyay U (2013) Foreign direct investment, environmentally sound technology and informal sector. Econ Modell 31(March):206–213CrossRefGoogle Scholar
  18. Chaudhuri S, Ghosh Dastidar K (2014) Vertical linkage between formal and informal credit markets: corruption and credit subsidy policy’. In: Marjit S, Rajeeve M (eds) Essays in honor of Professors Amitabha Bose and Dipankar Dasgupta. OUP, New DelhiGoogle Scholar
  19. Chaudhuri S, Gupta MR (2014) International factor mobility, informal interest rate and capital market imperfection: a general equilibrium analysis. Econ Model 37C:184–192CrossRefGoogle Scholar
  20. Floro MS, Ray D (1997) Vertical links between formal and informal financial Institutions. Rev Dev Econ 1:34–56CrossRefGoogle Scholar
  21. Gupta MR, Chaudhuri S (1997) Formal credit, corruption and the informal credit market in agriculture: a theoretical analysis. Economica 64:331–43CrossRefGoogle Scholar
  22. Haddad M, Harrison A (1993) Are there positive spillovers from direct foreign investment? Evidence form panel data for Morocco. J Dev Econ 42:51–74CrossRefGoogle Scholar
  23. Hoff K, Stiglitz JE (1996) Moneylenders and bankers: price-increasing subsidies in a monopolistically competitive market. J Dev Econ 52:429–62CrossRefGoogle Scholar
  24. Jain S (1999) Symbiosis vs. crowding out: the interaction of formal and informal credit markets in developing countries. J Dev Econ 59:419–444CrossRefGoogle Scholar
  25. Kokko A (1994) Technology, market characteristics, and spillovers. J Dev Econ 43(2):279–293, ElsevierGoogle Scholar
  26. Marjit S, Kar S, Chaudhuri S (2011) Recession in the skilled sector and implications for informal wage. Res Econ 65:158–163CrossRefGoogle Scholar
  27. Mishra A (1994) Clientelization and fragmentation in backward agriculture: forward induction and entry deterrence. J Dev Econ 45:271–285CrossRefGoogle Scholar
  28. Perrings C, Bhargava S, Gupta J (1995) The transfer of environmentally sound technology to small and medium scale enterprises in developing countries: a survey of the issues. Paper prepared for UNCTAD, GenevaGoogle Scholar
  29. Rodriguez-Clare A (1996) Multinationals, linkages, and economic development. Am Econ Rev 86(4):852–873, American Economic AssociationGoogle Scholar
  30. UNCTAD (2009) World investment report. Also available at: or
  31. Zhuang H (2008) Does FDI diminish local education spending inequality? An analysis of US panel data 1992–2002. Reg Sectoral Econ Stud 8(2):51–72Google Scholar

Copyright information

© Springer India 2014

Authors and Affiliations

  • Sarbajit Chaudhuri
    • 1
  • Ujjaini Mukhopadhyay
    • 2
  1. 1.Department of EconomicsUniversity of CalcuttaKolkataIndia
  2. 2.Department of EconomicsBehala CollegeKolkataIndia

Personalised recommendations