Prof. Sebastian Morris

Research & Publication (Trade and Investments)


Determinants Of The Sources Of FDI Into India

Today, Foreign Direct Investments (FDI) into a large developing economy like India arises from many source countries. The question of country characteristics that drive inward FDI into India is an interesting one. This study carries out an analysis of the inward FDI f

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The Way Out Of The Current Macroeconomic Mess: A Note

The current situation of a large Current Account Deficit (CAD), low growth, and plunging rupee is a result of the combination of early withdrawal from the fiscal stimulus and the RBI’s monetary conservatism. There is possibly a way out if credit can be expanded to close the differential bet

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Why Not Push for a 9 Per Cent Growth Rate?

One quite indisputable gain of the reform has been the increasing openness of the economy. The rise in the openness ratio began in the mid-1980s and accelerated in the 1990s, following the depreciation of the currency in 1990-91. However, the 1997-98 budget and the cu

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Prospects For FDI And Multinational Activity In The 90s

The paper discusses the implications of trends and patterns in foreign direct investment and of policy and structural changes for foreign direct investment in India in the 90s. Though high economic growth in the 1980s combined with the liberal policies towards FDI int

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Cost And Time Overruns In Public Sector Projects

Delays and cost overruns in public sector investments can raise the capital-output ratio in the sector and elsewhere, bringing down the efficacy of investments. Yet there are no estimates of the delays and cost overruns, and of their opportunity cost. This study arriv

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Trends In Foreign Direct Investment From India (1950-1982) Part 1

Foreign direct investment from India is not a marginal phenomenon. It is quite sizeable relative to foreign direct investment into India and private corporate investment in India. It is also quite comparable with the magnitudes of foreign direct investment of the newly industrialising countries a

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Blog (Trade and Investments)


Comment on the Trade Policy

The announcements made by the Minister are most disappointing. When world trade demand has shrunk by over 9%,  a restatement of developmental efforts that have been going on, very marginal and routine things like promise to reduce transactions costs were the only elements.  There is no

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SEZs Will Not Hurt Farmers

A harried commerce minister wrongly responded to the concerns of farmers by stating that the current SEZ initiative could hurt those who are giving up their land. The SEZ initiative is certainly not the first best option to promote exports of manufactured goods from I

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Unlock SMEs To Tap Full Export Potential

SMEs are the backbone of exports from India, especially of manufactures and increasingly of services if the source of value addition is taken into account. Indeed manufacturing in the ‘original sense’ is very much an SME business. The reasons are not far t

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Ignoring The Demand Side In Agriculture

Agricultural reform is not merely the opening up of the economy to imports and liberalising trade in general. Unfortunately, on the ill-advise of organisations like World Bank, we are hell bent on going the wrong way. The error is very much in the strategy. The receiv

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Soft-Peddle Agriculture In WTO Talks

In policy circles, there is unanimity that with Europe and the advanced countries moving to less support for agriculture, India, as a developing country, would stand to gain. Unfortunately, the matter is not so self-evident. India’s comparative ad

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Infrastructure Spending And Forex

Foreign exchange reserves are not like a bank balance which can be converted entirely into cash for spending. The issue of government expenditure for infrastructural investment has little directly to do with using or not using these. It has to do more with the e

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Stemming The Hollowing Out Of Manufacturing

Monetary targeting, which is the RBI’s way, is quite unsuitable in today’s environment of vastly asymmetric growth and capital flows. The belief that money supply determines the inflation rate was never quite true in the linear fashion that seems to

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Putting Forex Reserves To Good Use

Government spending cannot directly affect the level of reserves, unless the Reserve Bank of India adopts a policy of killing exports and inflows by allowing the rupee to appreciate and imports to flood the market. Even that would take time to work on the reserv

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