Book reviews: Indian multinationals in the world economy – Implications for development

Outward foreign direct investment (OFDI) from the developing countries, though not a new phenomenon, has grown in volume since the late eighties. And with it, so have the predictable debates on whether or not the phenomenon jells with the received theory of FDI and statistical tests of its impact on the host and home countries. Pradhan’s book departs from the beaten track in many ways. Much of the book is based on information and data painstakingly collected by the author from a variety of sources including the financial press in India. The book includes extensive case studies of firms investing abroad, it charts the birth, growth and overseas investments of India’s software industry in some detail, and the econometric tests are carefully designed with their limitations acknowledged.