54 l REGIONAL INVESTMENT PIONEERS IN SOUTH ASIA
7. IFDI stocks reflect accumulated changes in FDI inflows plus changes in valuation and currency fluctuations. Therefore, the first difference in IFDI stocks is not used as an estimate of FDI inflows. 8. There are eight investor home economies but nine investment destinations because the North Eastern Region of India (NER) was treated as a separate destination due to its remoteness. There were no investors from NER. 9. The literature documents the importance of large firms (“superstars”) in trade and production, and their impact on aggregate trade fluctuations, on aggregate welfare, and even on a country’s comparative advantage (Bernard et al. 2018; Freund and Pierola 2015; Gabaix 2011). In this context, OFDI can enable firms in small economies to grow and become more competitive. 10. For more on the trust deficit in South Asia, see Kathuria (2018, overview and chapter 1). 11. United Nations Population Data on migrant stocks, 2017. Migrants are defined as residents born in different countries, while the diaspora refers to migrants and their offspring born in the reporting country. 12. Estimates of services provision by mode in 2017 are cross-border transactions (27.7 percent), consumption abroad (10.4 percent), commercial presence abroad (58.9 percent), and presence of individuals abroad (2.9 percent) (WTO 2019). 13. Bhutan Trade Statistics 2018, and Nepal Department of Commerce. 14. Notification No.05/2019-Customs, Department of Revenue, Ministry of Finance, New Delhi, February 16, 2019. 15. SRO 927(I)/2019 and SRO 928(I)/2019, Ministry of Commerce, Islamabad, August 9, 2019, applying to imports and exports, respectively. SRO-977, on September 2, 2019, allowed the pharmaceutical industry to import raw material, medicines, and medical devices regulated by the Drugs Regulatory Authority of Pakistan.
References Ahmed, Vaqar, and Saad Shabbir. 2016 “Trade & Transit Cooperation with Afghanistan: Results from a Firm-Level Survey from Pakistan.” Sustainable Development Policy Institute, Islamabad. Aitken, B., and A. E. Harrison. 1999. “Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela.” American Economic Review 89 (3): 605–18. Albornoz, F., H. F. Calvo Pardo, G. Corcos, and E. Ornelas. 2012. “Sequential Exporting.” Journal of International Economics 88 (1): 17–31. Amighini, Alessia A., Margaret S. McMillan, and Marco Sanfilippo. 2017. “FDI and Capital Formation in Developing Economies: New Evidence from Industry-level Data.” Working Paper 23049, National Bureau of Economic Research, Cambridge, MA. Anderson, James E., Mario Larch, and Yoto V. Yotov. 2017. “Trade and Investment in the Global Economy.” Working Paper 23757, National Bureau of Economic Research, Cambridge, MA. Antràs, Pol, and Alonso de Gortari. 2020. “On the Geography of Global Value Chains.” Econometrica 84 (4): 1553–98.
