Japanese production networks in India: spatial distribution, agglomeration and industry effects

This paper examines the determinants of subnational location choice of Japanese multinational enterprises (JMNEs) in India to investigate whether or not conventional investment behaviour as 'foot-loose' and one-off investments has given way to an agglomeration logic as Japanese foreign dir...

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Bibliographic Details
Published inAsia Pacific business review Vol. 22; no. 4; pp. 612 - 640
Main Authors Horn, Sierk A., Cross, Adam R.
Format Journal Article
LanguageEnglish
Published Abingdon Routledge 01.10.2016
Taylor & Francis Ltd
Subjects
Foreign investment
Geographic information system (GIS) analysis
Geographic information systems
India
Japanese multinational enterprises (JMNEs)
Liberalization
liberalization and policy reform
Location
Multinational corporations
Networks
Production
Spatial analysis
subnational location choice
Japan
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Summary:This paper examines the determinants of subnational location choice of Japanese multinational enterprises (JMNEs) in India to investigate whether or not conventional investment behaviour as 'foot-loose' and one-off investments has given way to an agglomeration logic as Japanese foreign direct investment has intensified. Using geographic information system analysis of investment project numbers, we find that Japanese MNE behaviour in India is evolving, with complementing but complex subnational interactions of economic, institutional and infrastructure factors serving as strong determinants of location choice consistently across key phases of India's liberalization. We argue that Japanese investment decisions in India have followed a self-reinforcing dynamic whereby prior investments indeed attract further investment.
ISSN:1360-2381
1743-792X
DOI:10.1080/13602381.2016.1168625