000			01765nam a22001457a 4500
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100			_a Furuta, Manabu Sato, Takahiro and Otsuka, Keijiro _951220
245			_aSuccessful foreign direct investment through the development of parts supply industries in the host country: A study of India’s automobile manufacturing sector
260			_aThe Developing Economies
300			_a62(3), Sep, 2024: p.195-237
520			_aSeveral large multinationals and a few local assemblers dominate the Indian automobile industry. The largest multinational, Maruti Suzuki, entered the Indian automobile industry with a policy of developing local automotive parts manufacturers to achieve high local content ratio. This study seeks to determine the extent to which foreign direct investment (FDI) in host countries contributes to the growth of automobile parts manufacturers. We use district-level panel data from 2000 to 2008 to assess the linkage between the production of major automobile assemblers and the development of automotive parts suppliers located in the same and adjacent districts to those assemblers. Our regression results show the heterogeneity of the linkages, suggesting that the formation of industrial clusters by local parts suppliers and the expansion of their production capacity are likely to be key determinants of the success of FDI in the Indian automobile industry, rather than relying on in-house parts production or imports.- Reproduced https://onlinelibrary.wiley.com/doi/10.1111/deve.12401
650			_aAutomobile industry, Parts production, Foreign direct investment, Capacity enchantment of local enterprises, India. _951221
773			_aThe Developing Economies
942			_cAR