IDEAS home Printed from https://ideas.repec.org/a/spr/manint/v53y2013i6d10.1007_s11575-013-0178-z.html
   My bibliography  Save this article

The Variation in Indian Inward FDI Patterns

Author

Listed:
  • Ping Zheng

    (University of Westminster)

Abstract

This study examines the variation in Indian inward FDI patterns, considering the impact of economic development and geographic location on the variation from both FDI home and host country perspectives. Employing a panel dataset at the aggregate country-level, the study is conducted using the generalised least squares (GLS) model. The findings suggest that Indian FDI patterns vary over time in line with Indian economic and structural transformations. The patterns also differ between the home country groups in line with their economic development and geographic location relative to India. The desirable patterns of Indian inward FDI are determined not only the development levels of both host and home countries but also the host country’s factor endowment pattern. It is important for the Indian government to formulate selective targeting FDI policies to maximise economic impact of inward FDI by attracting more desirable efficiency-seeking FDI for higher economic growth.

Suggested Citation

  • Ping Zheng, 2013. "The Variation in Indian Inward FDI Patterns," Management International Review, Springer, vol. 53(6), pages 819-839, December.
    • Handle: RePEc:spr:manint:v:53:y:2013:i:6:d:10.1007_s11575-013-0178-z
    DOI: 10.1007/s11575-013-0178-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11575-013-0178-z
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11575-013-0178-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Balasubramanyam, V N & Salisu, M & Sapsford, David, 1996. "Foreign Direct Investment and Growth in EP and IS Countries," Economic Journal, Royal Economic Society, vol. 106(434), pages 92-105, January.
    2. Nachum, Lilach, 2003. "Does nationality of ownership make any difference and, if so, under what circumstances?: Professional service MNEs in global competition," Journal of International Management, Elsevier, vol. 9(1), pages 1-32.
    3. Kedia, Ben L. & Mukherjee, Debmalya, 2009. "Understanding offshoring: A research framework based on disintegration, location and externalization advantages," Journal of World Business, Elsevier, vol. 44(3), pages 250-261, July.
    4. Amitendu Palit & Shounkie Nawani, 2007. "Technological Capability as a Determinant of FDI Inflows: Evidence from Developing Asia & India," Indian Council for Research on International Economic Relations, New Delhi Working Papers 193, Indian Council for Research on International Economic Relations, New Delhi, India.
    5. Rao, V. V. Bhanoji, 1996. "Indian economic reforms and ASEAN-India economic relations," Journal of Asian Economics, Elsevier, vol. 7(4), pages 759-768.
    6. Chandana Chakraborty & Parantap Basu, 2002. "Foreign direct investment and growth in India: a cointegration approach," Applied Economics, Taylor & Francis Journals, vol. 34(9), pages 1061-1073.
    7. Liu, Xiaming & Wang, Chengang & Wei, Yingqi, 2001. "Causal links between foreign direct investment and trade in China," China Economic Review, Elsevier, vol. 12(2-3), pages 190-202.
    8. Culem, Claudy G., 1988. "The locational determinants of direct investments among industrialized countries," European Economic Review, Elsevier, vol. 32(4), pages 885-904, April.
    9. Lilach Nachum & Srilata Zaheer, 2005. "The persistence of distance? The impact of technology on MNE motivations for foreign investment," Strategic Management Journal, Wiley Blackwell, vol. 26(8), pages 747-767, August.
    10. Rashmi Banga, 2006. "The export-diversifying impact of Japanese and US foreign direct investments in the Indian manufacturing sector," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(4), pages 558-568, July.
    11. Peter J Buckley & L Jeremy Clegg & Adam R Cross & Xin Liu & Hinrich Voss & Ping Zheng, 2007. "The determinants of Chinese outward foreign direct investment," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(4), pages 499-518, July.
    12. D Sethi & S E Guisinger & S E Phelan & D M Berg, 2003. "Trends in foreign direct investment flows: a theoretical and empirical analysis," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(4), pages 315-326, July.
    13. Bevan, Alan & Estrin, Saul & Meyer, Klaus, 2004. "Foreign investment location and institutional development in transition economies," International Business Review, Elsevier, vol. 13(1), pages 43-64, February.
    14. Amitendu Palit & Shounkie Nawani, 2007. "Technological Capability as a Determinant of FDI Inflows - Evidence from Developing Asia & India," Finance Working Papers 22236, East Asian Bureau of Economic Research.
    15. Ping Zheng & Pamela Siler & Gianluigi Giorgioni, 2004. "FDI and the Export Performance of Chinese Indigenous Firms: a Regional Approach," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 2(1), pages 55-71.
    16. Peter Nunnenkamp, 2004. "To What Extent Can Foreign Direct Investment Help Achieve International Development Goals?," The World Economy, Wiley Blackwell, vol. 27(5), pages 657-677, May.
    17. Peter W. Liesch & Peter J. Buckley & Bernard L. Simonin & Gary Knight, 2012. "Organizing the Modern Firm in the Worldwide Market for Market Transactions," Management International Review, Springer, vol. 52(1), pages 3-21, February.
    18. John H. Dunning & Sarianna M. Lundan, 2008. "Multinational Enterprises and the Global Economy, Second Edition," Books, Edward Elgar Publishing, number 3215.
    19. Ashok Guha & Amit S. Ray, 2004. "India and Asia in the World Economy: The Role of Human Capital and Technology," International Studies, , vol. 41(3), pages 299-311, August.
    20. Susan E Feinberg & Sumit K Majumdar, 2001. "Technology Spillovers from Foreign Direct Investment in the Indian Pharmaceutical Industry," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 32(3), pages 421-437, September.
    21. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119.
    22. Liu, Xiaohui & Buck, Trevor & Shu, Chang, 2005. "Chinese economic development, the next stage: outward FDI?," International Business Review, Elsevier, vol. 14(1), pages 97-115, February.
    23. Raymond Vernon, 1966. "International Investment and International Trade in the Product Cycle," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 80(2), pages 190-207.
    24. Bohm Park & Keun Lee, 2003. "Comparative analysis of foreign direct investment in China Firms from South Korea, Hong Kong, and the United States in Shandong province," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 8(1), pages 57-84.
    25. John H Dunning, 1980. "Towards an Eclectic Theory of International Production: Some Empirical Tests," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 11(1), pages 9-31, March.
    26. Anwar, Sajid & Nguyen, Lan Phi, 2011. "Foreign direct investment and export spillovers: Evidence from Vietnam," International Business Review, Elsevier, vol. 20(2), pages 177-193, April.
    27. P Srinivasan, 2011. "Determinants of Foreign Direct Investment in SAARC Nations: An Econometric Investigation," The IUP Journal of Managerial Economics, IUP Publications, vol. 0(3), pages 26-42, August.
    28. Mari Sako, 2006. "Outsourcing and Offshoring: Implications for Productivity of Business Services," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 22(4), pages 499-512, Winter.
    29. Noorbakhsh, Farhad & Paloni, Alberto & Youssef, Ali, 2001. "Human Capital and FDI Inflows to Developing Countries: New Empirical Evidence," World Development, Elsevier, vol. 29(9), pages 1593-1610, September.
    30. Theodore H. Moran & Edward M. Graham & Magnus Blomstrom, 2005. "Does Foreign Direct Investment Promote Development?," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 3810, October.
    31. John H. Dunning & Rajneesh Narula, 2004. "Multinationals and Industrial Competitiveness," Books, Edward Elgar Publishing, number 3343.
    32. John H Dunning, 1998. "Location and the Multinational Enterprise: A Neglected Factor?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(1), pages 45-66, March.
    33. Donald J Lecraw, 1993. "Outward Direct Investment by Indonesian Firms: Motivation and Effects," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 24(3), pages 589-600, September.
    34. John Dunning, 1981. "Explaining the international direct investment position of countries: Towards a dynamic or developmental approach," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 117(1), pages 30-64, March.
    35. Li, Xiaoying & Liu, Xiaming, 2005. "Foreign Direct Investment and Economic Growth: An Increasingly Endogenous Relationship," World Development, Elsevier, vol. 33(3), pages 393-407, March.
    36. Chakrabarti, Avik, 2003. "A theory of the spatial distribution of foreign direct investment," International Review of Economics & Finance, Elsevier, vol. 12(2), pages 149-169.
    37. Wei, Wenhui, 2005. "China and India: Any difference in their FDI performances?," Journal of Asian Economics, Elsevier, vol. 16(4), pages 719-736, August.
    38. Ping Zheng & Pamela A. Siler & Gianluigi Giorgioni, 2006. "Sustaining growth in China's regions through FDI," World Review of Entrepreneurship, Management and Sustainable Development, Inderscience Enterprises Ltd, vol. 2(1/2), pages 4-22.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Anil Nair & Mehdi Sharifi Khobdeh & Aydin Oksoy & Orhun Guldiken & Chris H. Willis, 2023. "A review of strategic management research on India," Asia Pacific Journal of Management, Springer, vol. 40(4), pages 1341-1392, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ramírez-Alesón, Marisa & Fleta-Asín, Jorge, 2016. "Is the Importance of Location Factors Different Depending on the Degree of Development of the Country?," Journal of International Management, Elsevier, vol. 22(1), pages 29-43.
    2. Justin Paul & Gurmeet Singh, 2017. "The 45 years of foreign direct investment research: Approaches, advances and analytical areas," The World Economy, Wiley Blackwell, vol. 40(11), pages 2512-2527, November.
    3. Paul, Justin & Feliciano-Cestero, María M., 2021. "Five decades of research on foreign direct investment by MNEs: An overview and research agenda," Journal of Business Research, Elsevier, vol. 124(C), pages 800-812.
    4. Liu, Zhiyuan & Xu, Yue & Wang, Peijie & Akamavi, Raphaël, 2016. "A pendulum gravity model of outward FDI and export," International Business Review, Elsevier, vol. 25(6), pages 1356-1371.
    5. Cleeve, Emmanuel A. & Debrah, Yaw & Yiheyis, Zelealem, 2015. "Human Capital and FDI Inflow: An Assessment of the African Case," World Development, Elsevier, vol. 74(C), pages 1-14.
    6. Yanfeng Liu & Xue Li & Xiaonan Zhu & Min-Kyu Lee & Po-Lin Lai, 2023. "The theoretical systems of OFDI location determinants in global north and global south economies," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-13, December.
    7. Chris Wagner, 2020. "Deducing a state-of-the-art presentation of the Eclectic Paradigm from four decades of development: a systematic literature review," Management Review Quarterly, Springer, vol. 70(1), pages 51-96, February.
    8. Narula, Rajneesh, 2010. "Much ado about nothing, or sirens of a brave new world?: MNE activity from developing countries and its significance for development," MERIT Working Papers 2010-021, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    9. Andrew G Ross & Maktoba Omar & Anqi Xu & Samikshya Pandey, 2019. "The impact of institutional quality on Chinese foreign direct investment in Africa," Local Economy, London South Bank University, vol. 34(6), pages 572-588, September.
    10. Nádia Campos Pereira Bruhn & Juciara Nunes de Alcântara & Dany Flávio Tonelli & Ricardo Pereira Reis & Luiz Marcelo Antonialli, 2016. "Why Firms Invest Abroad? A Bibliometric Study on OFDI Determinants from Developing Economies," Global Business Review, International Management Institute, vol. 17(2), pages 271-302, April.
    11. Bala Ramasamy & Matthew Yeung, 2010. "The Determinants of Foreign Direct Investment in Services," The World Economy, Wiley Blackwell, vol. 33(4), pages 573-596, April.
    12. Joseph A. Clougherty & Jin Uk Kim & Bradley R. Skousen & Florian Szücs, 2017. "The Foundations of International Business: Cross-Border Investment Activity and the Balance between Market-Power and Efficiency Effects," Journal of Management Studies, Wiley Blackwell, vol. 54(3), pages 340-365, May.
    13. Pineli, Andre & Narula, Rajneesh & Belderbos, Rene, 2019. "FDI, multinationals and structural change in developing countries," MERIT Working Papers 2019-004, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    14. Stoian, Carmen, 2013. "Extending Dunning's Investment Development Path: The role of home country institutional determinants in explaining outward foreign direct investment," International Business Review, Elsevier, vol. 22(3), pages 615-637.
    15. Yoo, Dasun & Reimann, Felix, 2017. "Internationalization of Developing Country Firms into Developed Countries: The Role of Host Country Knowledge-Based Assets and IPR Protection in FDI Location Choice," Journal of International Management, Elsevier, vol. 23(3), pages 242-254.
    16. Barbieri, Paolo & Boffelli, Albachiara & Elia, Stefano & Fratocchi, Luciano & Kalchschmidt, Matteo, 2022. "How does Industry 4.0 affect international exposure? The interplay between firm innovation and home-country policies in post-offshoring relocation decisions," International Business Review, Elsevier, vol. 31(4).
    17. Bilgili, Faik & Tülüce, Nadide Sevil Halıcı & Doğan, İbrahim, 2012. "The determinants of FDI in Turkey: A Markov Regime-Switching approach," Economic Modelling, Elsevier, vol. 29(4), pages 1161-1169.
    18. Sethi, Deepak & Guisinger, Stephen & Ford, David L. & Phelan, Steven E., 2002. "Seeking greener pastures: a theoretical and empirical investigation into the changing trend of foreign direct investment flows in response to institutional and strategic factors," International Business Review, Elsevier, vol. 11(6), pages 685-705, December.
    19. Suder, Gabriele & Liesch, Peter W. & Inomata, Satoshi & Mihailova, Irina & Meng, Bo, 2015. "The evolving geography of production hubs and regional value chains across East Asia: Trade in value-added," Journal of World Business, Elsevier, vol. 50(3), pages 404-416.
    20. Rajneesh Narula & André Pineli, 2017. "Multinational Enterprises and Economic Development in Host Countries: What We Know and What We Don’t Know," Palgrave Studies in Impact Finance, in: Gianluigi Giorgioni (ed.), Development Finance, chapter 6, pages 147-188, Palgrave Macmillan.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:manint:v:53:y:2013:i:6:d:10.1007_s11575-013-0178-z. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.