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Business groups and foreign direct investments by developing country firms: An empirical test in India

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  • Chari, Murali D.R.
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    Abstract

    Drawing on recent theoretical explanations, we develop hypotheses on the relationship between business group affiliation and FDI by developing country firms. We hypothesize a positive relationship between business group affiliation and FDI overall, as well as between business group affiliation and FDI into advanced countries and into developing countries. In addition, we argue that the impact of business group affiliation on FDI varies in strength among business groups based on their size and diversification. We also empirically test the hypotheses in a sample of firms from one large and important developing country, India.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of World Business.

    Volume (Year): 48 (2013)
    Issue (Month): 3 ()
    Pages: 349-359

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    Handle: RePEc:eee:worbus:v:48:y:2013:i:3:p:349-359

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    Related research

    Keywords: Business groups; FDI; Emerging economies; Developing countries; India;

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    1. Sumon Kumar Bhaumik & Nigel Driffield & Sarmistha Pal, 2010. "Does ownership structure of emerging-market firms affect their outward FDI? The case of the Indian automotive and pharmaceutical sectors," Journal of International Business Studies, Palgrave Macmillan, vol. 41(3), pages 437-450, April.
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    13. Louis T. Wells, 1983. "Third World Multinationals: The Rise of Foreign Investments from Developing Countries," MIT Press Books, The MIT Press, edition 1, volume 1, number 026273169x, December.
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