Constraints to Foreign Direct Investment in Indian Hospitals

Journal of International Commerce, Economics and Policy, Vol. 1, No. 1, pp. 121-143, April 2010

Posted: 1 Jun 2010

See all articles by Rupa Chanda

Rupa Chanda

Indian Institute of Management, Bangalore

Date Written: April 1, 2010

Abstract

This paper examines the impact of a liberalised foreign direct investment (FDI) regime in Indian hospitals on FDI inflows. The paper shows that there is hardly any FDI in Indian hospitals due to domestic constraints such as high initial establishment costs, low health insurance penetration, manpower shortages, high cost of medical equipment, and regulatory deficiencies. These constraints also impede domestic investment in hospitals. The paper concludes that a liberal foreign investment regime may not result in increased FDI inflows if regulatory and structural impediments continue to constrain investment in the host economy. Investment liberalisation must thus be supplemented by domestic regulatory reforms to create an environment that is conducive to all investors.

Keywords: Foreign Direct Investment (FDI), Hospitals, India, Constraints, Regulations, Reforms

Suggested Citation

Chanda, Rupa, Constraints to Foreign Direct Investment in Indian Hospitals (April 1, 2010). Journal of International Commerce, Economics and Policy, Vol. 1, No. 1, pp. 121-143, April 2010, Available at SSRN: https://ssrn.com/abstract=1618725

Rupa Chanda (Contact Author)

Indian Institute of Management, Bangalore ( email )

Bannerghatta Road
Bangalore, Karnataka
India

Do you have negative results from your research you’d like to share?

Paper statistics

Abstract Views
911
PlumX Metrics