Emerging Multinationals: A Comparison of Chinese and Indian Outward Foreign Direct Investment
The present study deals with the origin and growth of outward foreign direct investment (OFDI) by emerging Chinese and Indian multinationals and examines the locational determinants of such investments. Both Chinese and Indian OFDI flows were observed to have surged after the adoption of economic openness policies by the home country in the late 1970s and the 1990s respectively and are now increasingly being driven by wholly-owned projects and acquisitions abroad. Indian and Chinese firms both started OFDI operations in developing countries and then they expanded into developed regions in the 1990s. Among locational factors, both Chinese and Indian OFDI projects are attracted by host country imports from the sources, greater strength of host currencies, rising host prices and host status of being offshore financial centres. While the Chinese multinationals were found to have preference for hosts with locational proximity, small size and high natural resource endowments, the Indian firms appear to choose countries with large size and that have bilateral investment treaty (BIT) with India irrespective of their physical distance from India.
Volume (Year): 3 (2011)
Issue (Month): 1 (April)
|Contact details of provider:|| Postal: Lembah Pantai, 50603 Kuala Lumpur|
Web page: http://ijie.um.edu.my
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Yin-Wong Cheung & Xingwang Qian, 2009.
"The Empirics of China's Outward Direct Investment,"
CESifo Working Paper Series
2621, CESifo Group Munich.
- Yin-Wong Cheung & Jakob de Haan & XingWang Qian & Shu Yu, 2011.
"China's Outward Direct Investment in Africa,"
132011, Hong Kong Institute for Monetary Research.
- V N Balasubramanyam & V Mahambare, 2003. "Foreign direct investment in India," Working Papers 539987, Lancaster University Management School, Economics Department.
- Agnès Bénassy-Quéré & Maylis Coupet & Thierry Mayer, 2007.
"Institutional Determinants of Foreign Direct Investment,"
Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers)
- Agnès Bénassy-Quéré & Maylis Coupet & Thierry Mayer, 2007. "Institutional Determinants of Foreign Direct Investment," The World Economy, Wiley Blackwell, vol. 30(5), pages 764-782, 05.
- Agnès Bénassy-Quéré & Maylis Coupet & Thierry Mayer, 2005. "Institutional Determinants of Foreign Direct Investment," Working Papers 2005-05, CEPII research center.
When requesting a correction, please mention this item's handle: RePEc:umk:journl:v:3:y:2011:i:1:p:113-148. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Professor Dr. Rajah Rasiah)
If references are entirely missing, you can add them using this form.