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OFDI between India and the LAC Region : A firm level motive analysis

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  • Varma, Sumati
  • Nayyar, Rishika

Abstract

India and the Latin America and Caribbean (LAC) region have emerged as major growth drivers of the world economy in the last couple of decades. Trade and investment relations between these regions have traditionally been rather insignificant but have picked up in recent years. Since 2000, Indian companies have invested about $12 billion in the LAC region across various industries. This paper examines the important issue of the motives driving OFDI between the two regions. It uses content analysis to identify the motives of the FDI transactions and the Chi Square test to find out the dominant motives driving investment from India to the LAC region across industries between 2000 - 2012. The study finds that Indian OFDI into the LAC is market seeking in nature and thus makes a significant contribution to the literature on FDI in the emerging markets context.

Suggested Citation

  • Varma, Sumati & Nayyar, Rishika, 2014. "OFDI between India and the LAC Region : A firm level motive analysis," MPRA Paper 56219, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:56219
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    References listed on IDEAS

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    Cited by:

    1. Niti Bhasin & Amit Soni & Rabi Narayan Kar, 2021. "Do Institutional and Macroeconomic Factors Matter in IT companies M&As? Evidence from India," Business Perspectives and Research, , vol. 9(2), pages 286-305, May.
    2. Amit Soni & Avinash Chandra & Sumati Varma, 2020. "Impact of M&As on Employment in the Indian Information Technology (IT) Industry," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 63(2), pages 311-329, June.
    3. Reddy, Ketan & Sasidharan, Subash & Doytch, Nadia, 2022. "Outward foreign direct investment and domestic innovation efforts: Evidence from India," Journal of Economics and Business, Elsevier, vol. 122(C).

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    More about this item

    Keywords

    India; LAC; OFDI; Motives;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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