The Impact of Foreign Collaborations (Technology) on India’s Foreign Trade and Industrial Competitiveness: A Study of Automobile Ancillary Industry

INTERNATIONAL TECHNOLOGY TRANSFER, Hamalaya Publishing House, Mumbai, 1999

Indian Journal of Applied Economics, Vol. 4, No. 3, pp. 77-87, April-June 1995

9 Pages Posted: 3 May 2011

See all articles by Pawan K. Chugan

Pawan K. Chugan

Nirma University - Institute of Management

Date Written: 1993

Abstract

The impact of foreign collaborations or international technology transfers in developing host countries has been a major bone of contention. Literature on this subject has varied views and the role of MNCs in and the sharing of the net benefits between the technology givers and technology takers has been a subject of continuous controversy. The issue has further assumed greater importance with assiduous process of economic liberalisation and globalisation and sets out an agenda for further research on this subtle subject. Considering the nature of tangible assets and the advantages MNCs lend to the host country’s industry, it is general refrain that the units operating with foreign technology should reveal better performance than their local counterparts. This study, which is based on the data pertaining to pre-liberalisation period of Indian economy has examined the impact of foreign technology with respect to R&D, foreign trade and industrial competitiveness by using several variables and issues or restrictive clauses put in the foreign collaboration agreements for the Indian automobile industry and has come out with some striking findings that shatters the common perception regarding the likely superior performance of units operating with foreign collaborations and logically underscores the factors behind it and put forward notable policy implication.

Keywords: Impact of foregin technology, MNCs, R&D Thrust; Product development, adaptation and absorption; Industrial Competitiverness, Export restrictions, Import intensity, Export performance

JEL Classification: F14, F2, F23, L62

Suggested Citation

Chugan, Pawan Kumar, The Impact of Foreign Collaborations (Technology) on India’s Foreign Trade and Industrial Competitiveness: A Study of Automobile Ancillary Industry (1993). INTERNATIONAL TECHNOLOGY TRANSFER, Hamalaya Publishing House, Mumbai, 1999; Indian Journal of Applied Economics, Vol. 4, No. 3, pp. 77-87, April-June 1995. Available at SSRN: https://ssrn.com/abstract=1825903

Pawan Kumar Chugan (Contact Author)

Nirma University - Institute of Management ( email )

Sarkhej Gandhinagar Highway
Ahmedabad, Gujarat 382481
India
+912717241900 (Phone)
+912717241916 (Fax)

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