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A Panel data analysis of locational determinants of outward Foreign Direct Investment from China and India

Duanmu, J and Guney, Y (2009) A Panel data analysis of locational determinants of outward Foreign Direct Investment from China and India Journal of Asia Business Studies, 3 (2). 1 - 15. ISSN 1558-7894

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Official URL: http://dx.doi.org/10.1108/15587890980001512

Abstract

The upsurge of Chinese and Indian outward foreign direct investment (FDI) raises an unanswered question about locational determinants of direct investment from the two countries. Using an unbalanced bilateral FDI database, we find that Chinese and Indian FDI are attracted to countries with large market size, low GDP growth, high volumes of imports from China or India, and low corporate tax rates. We also find important differences between China and India. While Chinese FDI is drawn to countries with open economic regimes, depreciated host currencies, better institutional environments, and English speaking status, none of these factors are important for Indian FDI. Chinese FDI is also deterred by geographic distance and OCED membership. However, neither of these has any impact on Indian FDI.

Item Type:Article
Additional Information:This article is © Emerald Group Publishing and permission has been granted for this version to appear here. Emerald does not grant permission for this article to be further copied/distributed or hosted elsewhere without the express permission from Emerald Group Publishing Limited.
Divisions:Faculty of Business, Economics and Law > Surrey Business School
ID Code:254649
Deposited By:Symplectic Elements
Deposited On:02 Mar 2012 15:23
Last Modified:24 Jan 2013 09:29

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