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Economic Freedom and Indian Outward Foreign Direct Investment: An Empirical Analysis

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  • Anwar, Amar
  • Mughal, Mazhar

Abstract

This study examines the role economic freedom plays in attracting Indian outward foreign direct investment to various countries. Investments by Indian multinationals to various continents are studied along with aggregate investment outflows. Results show that Indian outward FDI do appear to prefer economically free economies. Government size, ease of foreign trade, and market regulations are the aspects of economic freedom Indian investors appear to cherish, while legal structure does not seem to influence the volume of investments by Indian multinationals.

Suggested Citation

  • Anwar, Amar & Mughal, Mazhar, 2012. "Economic Freedom and Indian Outward Foreign Direct Investment: An Empirical Analysis," MPRA Paper 49610, University Library of Munich, Germany, revised 15 Oct 2012.
    • Handle: RePEc:pra:mprapa:49610
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    Cited by:

    1. Panthamit, Nisit & Chaiboonsri, Chukiat, 2020. "China’s Outward Foreign Direct Investment in the Greater Mekong Subregion," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 35(1), pages 129-151.
    2. Amar Iqbal Anwar & Mazhar Y Mughal, 2015. "Determinants of Russian Firms' Merger and Acquisition Activities," Economics Bulletin, AccessEcon, vol. 35(4), pages 2382-2394.
    3. Anwar, Amar & Mughal, Mazhar, 2014. "Why do Russian firms invest abroad? A firm level analysis," MPRA Paper 58178, University Library of Munich, Germany.
    4. Amar Iqbal Anwar & Mazhar Mughal, 2014. "Why do Russian firms invest abroad? A firm level analysis [Centre d'Analyse Théorique et de Traitement des données économiques WHY DO RUSSIAN FIRMS INVEST ABROAD? A FIRM LEVEL ANALYSIS]," Working papers of CATT hal-01885147, HAL.
    5. Wladimir Andreff, 2015. "Outward Foreign Direct Investment from BRIC countries: Comparing strategies of Brazilian, Russian, Indian and Chinese multinational companies," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 12(2), pages 79-131, December.
    6. Natalia Vechiu, 2018. "Foreign direct investments and "green" consumers," Post-Print hal-02059992, HAL.
    7. Armand Totouom, 2021. "Natural resources, economic freedom and Foreign Direct Investment in Africa," Economics Bulletin, AccessEcon, vol. 41(2), pages 764-771.
    8. Munjal, Surender & Varma, Sumati & Bhatnagar, Ankur, 2022. "A comparative analysis of Indian and Chinese FDI into Africa: The role of governance and alliances," Journal of Business Research, Elsevier, vol. 149(C), pages 1018-1033.
    9. Wladimir Andreff, 2014. "Outward foreign direct investment by Brazilian and Indian multinational companies: comparison with Russian-Chinese multinationals," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01279896, HAL.
    10. Afi, Hatem & Boubaker, Sabri & Omri, Anis, 2022. "Do foreign investment and economic freedom matter for behavioral entrepreneurship? Comparing opportunity versus necessity entrepreneurs," Technological Forecasting and Social Change, Elsevier, vol. 181(C).
    11. Wladimir Andreff, 2016. "Outward Foreign Direct Investment from BRIC countries: Comparing strategies of Brazilian, Russian, Indian and Chinese multinational companies," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01342391, HAL.
    12. Wladimir Andreff, 2016. "Outward Foreign Direct Investment from BRIC countries: Comparing strategies of Brazilian, Russian, Indian and Chinese multinational companies," Post-Print halshs-01342391, HAL.
    13. Wladimir Andreff, 2014. "Outward foreign direct investment by Brazilian and Indian multinational companies: comparison with Russian-Chinese multinationals," Post-Print halshs-01279896, HAL.
    14. Amar Anwar & Ichiro Iwasaki, 2022. "Institutions and FDI from BRICS countries: a meta-analytic review," Empirical Economics, Springer, vol. 63(1), pages 417-468, July.
    15. Natalia Vechiu, 2018. "Foreign direct investments and "green" consumers," Economics Bulletin, AccessEcon, vol. 38(1), pages 159-181.

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    More about this item

    Keywords

    Outward FDI; Economic Freedom; Foreign Direct Investment; India;
    All these keywords.

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

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