Foreign Direct Investment and Export Performance of Pharmaceutical Firms in India: An Empirical Approach

Abstract

This paper presents an empirical analysis of how foreign direct investment impact on the export performance of pharmaceutical firms in India. The hypothesis is examined using panel data analysis. The results show that foreign ownership has a negative impact on export performance. Unlike other industries, it is observed that in pharmaceutical industry foreign owned firms export less and focus more on domestic demand and host country specific advantages. Our findings provide rich source of information to policy makers, researchers and the management of both foreign and domestic owned firms.