Proceedings of World Business Research Conference

Proceedings of World Business Research Conference
21 - 23 April 2014, Novotel World Trade Centre, Dubai, UAE, ISBN: 978-1-922069-48-1
Analyzing the Effects of Inward FDI on Local Firms: The
Positive and Negative Aspects
Rohit Prabhudesai
The objective of this paper is to take into account the effects of Inward Foreign Direct Investment
on local firms. As world is increasingly becoming global in nature, Inward FDI has started playing a
key role in most nations’ development. However, this Inward FDI has also had an impact on the
domestic firms present in the recipient country. We will analyze the circumstances when Inward
FDI proves as a boon and the times when Inward FDI proves as a curse by going through the
literature available on the topic. By then providing a theoretical framework, we discuss these
factors to determine the overall impact of Inward FDI on local firms.
Field of Research: Management
Rohit Subhash Prabhudesai, PhD Scholar- Department of Economics, Birla Institute of Technology and
science, Sancoale-Goa. India. Email: