Foreign Direct Investment and Location Advantages: Japanese Perceptions of India Compared to China and ASEAN

Abstract

We argue in this paper that in the WTO regime the role of efficiency seeking FDI and location advantages are likely to emerge more important. A primary survey was conducted and the Japanese MNEs were asked to assess location advantages for India in relation to China and the East Asian countries. The results support the earlier studies on the importance of infrastructure development in attracting FDI but do not back the emphasis on controls and administrative complexities.