Benefitting from Investment Abroad? Evidence from Indian Manufacturing

Using plant-level data for 2008-2017, we examine the impact of the adoption of ISO 14000 by Indian manufacturing plants on their energy intensity. The propensity-score-matching difference-in-difference (PSM-DID) estimator is used to assess the effect. Our results show that the adoption of ISO 14000 tends to reduce energy intensity in Indian manufacturing plants, especially among the low and low-medium technology industries. ISO 14000 lowers energy intensity in industrial plants in energy-intensive industries, and the effect is stronger for the group of such industries covered under the Perform–Achieve–Trade (PAT) scheme of the Indian government, a market-based compliance mechanism for energy efficiency improvement.

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Is There Any Link Between FDI and Profitability in the Indian Manufacturing Sector?

Patnaik,

Rath

2024

Vision: The Journal of Business Perspective

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Although a plethora of studies examine the determinants of profitability, this study adds to existing literature by assessing whether foreign direct investment (FDI) inflows make any significant contribution to profitability. To do so, the article uses disaggregated annual data relating to the Indian manufacturing sector 2012−2019. Results obtained from employing panel data models showed that FDI inflows have a positive and significant impact on profitability. Further, our results indicate that FDI affects profitability only in the long run but not in the short run. Capital intensity and size do not affect the profitability of the Indian manufacturing sector. From a policy perspective, it is imperative for manufacturing industries in India to attract more FDI inflow in order to boost profitability in the long run.

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Benefitting from Investment Abroad? Evidence from Indian Manufacturing

Cited by 5 publications

References 49 publications

Occupational safety and multiple management systems certifications: The influence of internationalisation of the firm

Occupational safety and multiple management systems certifications: The influence of internationalisation of the firm

Impact of ISO 14000 on Energy Intensity of Manufacturing Plants in India

Is There Any Link Between FDI and Profitability in the Indian Manufacturing Sector?

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