Identifying the impact of geographical proximity on spillover effect of FDI: The evidence from Indian local firms’ performance gains

This paper investigates the role of geographical proximity on FDI spillovers from foreign to Indian local firms. We use data set of the manufacturing firms between 1988 and 2018 in India, estimating the productivity based on Cobb–Douglas production function. For measuring geographical proximity, the coordinates of each firm, represented to as ‘latitude and longitude’, provided by Google maps geocoding API is used. To conduct spatial analysis, we...