Publication

This working paper examines the role of multinational investment in a fledgling industrial sector, with a focus on the software industry in India. There has not been a detrimental impact on the growth of domestic firms as a result of multinational entry, which the author suggests is a rather unique experience. Instead, a 'virtuous cycle' of competition and productivity improvements has been created. The author explores the ways MNCs can influence domestic activity, the contribution of both MNCs and domestic firms to the evolution of new business models, and the transformation of the labor market for software programmers.