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Foreign Direct Investment Decisions into China and India

Author

Listed:
  • Mauricio Zelaya

    (Ted Rogers School of Management Ryerson University)

  • Ayse Yüce

    (Department of Economics University of Waterloo)

Abstract

We investigate the foreign direct investment projects of the multinational companies into the two major BRIC countries: India and China. Our results indicate that wage levels and country population and GDP growth are the major factors that affect company directors’ decision to invest into these countries.

Suggested Citation

  • Mauricio Zelaya & Ayse Yüce, 2014. "Foreign Direct Investment Decisions into China and India," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(3), pages 300-316, March.
  • Handle: RePEc:asi:aeafrj:2014:p:300-316
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    References listed on IDEAS

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    1. Khondoker Abdul Mottaleb & Kaliappa Kalirajan, 2010. "Determinants of Foreign Direct Investment in Developing Countries," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 4(4), pages 369-404, November.
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    3. Wei, Wenhui, 2005. "China and India: Any difference in their FDI performances?," Journal of Asian Economics, Elsevier, vol. 16(4), pages 719-736, August.
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    5. Dewenter, Kathryn L, 1995. "Do Exchange Rate Changes Drive Foreign Direct Investment?," The Journal of Business, University of Chicago Press, vol. 68(3), pages 405-433, July.
    6. Christine M Chan & Shige Makino & Takehiko Isobe, 2006. "Interdependent behavior in foreign direct investment: the multi-level effects of prior entry and prior exit on foreign market entry," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(5), pages 642-665, September.
    7. Robert Grosse & Len J Trevino, 1996. "Foreign Direct Investment in the United States: An Analysis by Country of Origin," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(1), pages 139-155, March.
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    9. Sun, Qian & Tong, Wilson & Yu, Qiao, 2002. "Determinants of foreign direct investment across China," Journal of International Money and Finance, Elsevier, vol. 21(1), pages 79-113, February.
    10. Wilbur Chung, 2001. "Identifying Technology Transfer in Foreign Direct Investment: Influence of Industry Conditions and Investing Firm Motives," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 32(2), pages 211-229, June.
    11. Steven Globerman & Daniel M Shapiro, 1999. "The Impact of Government Policies on Foreign Direct Investment: The Canadian Experience," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 30(3), pages 513-532, September.
    12. Khondoker Abdul Mottaleb & Kaliappa Kalirajan, 2010. "Determinants of Foreign Direct Investment in Developing Countries: A Comparative Analysis," ASARC Working Papers 2010-13, The Australian National University, Australia South Asia Research Centre.
    13. 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.
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    Keywords

    FDI; China; India;

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