Location Determinants of Indian Multinationals: A Multilevel Analysis

2019 ◽  
Vol 21 (5) ◽  
pp. 1200-1217
Author(s):  
Munmi Saikia
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Outward Foreign Direct Investment ◽  
New Wave ◽  
Host Countries ◽  
Firm Level ◽  
The Past ◽  
Country Level ◽  
Location Determinants ◽  
Multilevel Linear Regression

The study investigates a simultaneous act of country-level determinants and firm-level heterogeneity on location distribution of the new wave of outward foreign direct investment (OFDI) from India. Indian firms are nested within host countries. Therefore, the current study employs mixed multilevel linear regression model to analyse multilevel and longitudinal data. Using firm-to-destination data, the study finds that location distribution of Indian multinationals is simultaneously driven by firm-level heterogeneity and country-level determinants. The study shows that location determinants of the recent wave of OFDI of Indian firms are significantly different from the past wave.

Country-level macro-corporate governance and the outward foreign direct investment

2018 ◽  
Vol 45 (1) ◽  
pp. 107-123 ◽  
Author(s):  
Tong Tong ◽  
Tarlok Singh ◽  
Bin Li
Keyword(s):  
Corporate Governance ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
National Level ◽  
Political Stability ◽  
Outward Foreign Direct Investment ◽  
Host Countries ◽  
Data Set ◽  
Content Type ◽  
Country Level

Purpose China’s outward foreign direct investment (ODI) has become a recent phenomenon in that China is now rated as the world’s third largest country for ODI. Previous studies have found that China’s ODI is driven by the attractions of natural resources and overseas markets. Yet these studies have ignored the role of corporate governance at a national level, the paper aims to discuss these issues. Design/methodology/approach The Kaufmann et al. (1999) data set is used in our study and the data sample have covered the period from 2003 to 2012 for a comprehensive set of 171 host countries. Random effects model are applied in the paper and population average model is used to check the robustness of the results. Findings The authors find that the effects of macro-corporate governance are distinct in different sample periods, as well as in geographical and economic regions, when attracting China’s ODI. Indicators such as political stability, the absence of violence, regulatory effectiveness, regulatory quality, the rule of law and the control of corruption are found to be positively related to China’s ODI. Originality/value This is one of the first papers to investigate the relationship between macro-corporate governance indicators and China’s ODI. 171 countries are included in the data sample and sub-sample tests are also conducted.

scholarly journals The dissuasive effect of U.S. political influence on Chinese FDI during the “Going Global” policy era

2017 ◽  
Vol 20 (1) ◽  
pp. 38-69 ◽  
Author(s):  
Jing-Lin Duanmu ◽  
Francisco Urdinez
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Political Influence ◽  
The United States ◽  
Chinese Government ◽  
Host Countries ◽  
Firm Level ◽  
Economic Diplomacy ◽  
Country Level ◽  
Political Determinants

AbstractBuilding on the growing debate on political determinants of foreign direct investment, we investigate the relationship between U.S. political influence and the global distribution of China's outward foreign direct investment (OFDI). Using country-level and firm-level datasets of China's greenfield investment, we find strong evidence that Chinese state controlled firms strategically reduce investment in host countries under significant political influence of the United States. Our results are robust to alternative specification and two falsification tests. The findings suggest that the Chinese government uses FDI as a way of economic diplomacy.

Foreign Direct Investment and the Flying Geese Model: Japanese Electronics Firms in Asia-Pacific

2000 ◽  
Vol 32 (2) ◽  
pp. 281-304 ◽  
Author(s):  
David W Edgington ◽  
Roger Hayter
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Asia Pacific ◽  
Critical Examination ◽  
Host Countries ◽  
Billiard Ball ◽  
Firm Level ◽  
Geographical Patterns ◽  
Japanese Fdi

This paper is a critical examination of the ‘flying geese’ and ‘billiard ball’ models of foreign direct investment (FDI) and their ability to explain the spatial expansion of Japanese electronics multinationals (MNCs) in Asia-Pacific countries from 1985 to 1996. Data on Japanese FDI are analyzed in this region at the aggregate, sectoral, and firm level. The paper commences with a review of the flying geese model, especially that version which interprets Japanese FDI as a catalyst for Asian development, and the billiard ball metaphor which suggests a mechanism for host countries to ‘catch up’ with Japan. The authors then turn to an analysis of Japanese FDI in Asia-Pacific together with employment data for fourteen major firms. This allows an evaluation of the two models in terms of recent geographical patterns of investment and employment growth by electronics MNCs. A special case study of Matsushita Electric Industrial Co. Ltd (MEI) helps flesh out the evolving geography of Japanese electronics firms in Asia-Pacific. Although the results support the overall patterns suggested by the two models, the authors argue that metaphors and analogies such as flying geese and billiard balls should not be used casually and as a substitute for analysis.

scholarly journals Climbing the Rungs of the Quality Ladder: FDI and Domestic Exporters in Romania

2020 ◽  
Vol 130 (628) ◽  
pp. 937-955
Author(s):  
Matej Bajgar ◽  
Beata Javorcik
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
Positive Relationship ◽  
Host Countries ◽  
Firm Level ◽  
Level Information ◽  
Quality Ladder ◽  
Quality Of Products

Abstract This article argues that inflows of foreign direct investment can facilitate export upgrading in host countries. Using customs data merged with firm-level information for 2005–11, it shows a positive relationship between the quality of products exported by Romanian firms and the presence of multinational enterprises (MNEs) in the upstream (input-supplying) industries. Export quality is also positively related to MNE presence in the downstream (input-sourcing) industries and the same industry, but these relationships are less robust. These conclusions hold both when the product quality is proxied with unit values and when it is estimated following the approach of Khandelwal et al. (2013).

OUTWARD FOREIGN DIRECT INVESTMENT OF CHINA’S BANKING SECTOR: DETERMINANTS AND MOTIVATIONS

2021 ◽  
pp. 1-23
Author(s):  
YUHUA ZHAO ◽  
NILUFER OZDEMIR ◽  
REN ZHANG ◽  
LIAN AN
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Regression Models ◽  
Banking Sector ◽  
Negative Binomial ◽  
Panel Regression ◽  
Outward Foreign Direct Investment ◽  
The Sustainable Development ◽  
Location Determinants ◽  
Chinese Banks

The outward foreign direct investment (OFDI) is vital for the sustainable development of China’s banking sector. This paper examines the location determinants of OFDI by China’s banks during 2003–2015 with a set of negative binomial panel regression models. We show that the OFDI for China’s banking sector generally exhibits market-seeking, resource-seeking and efficiency-seeking motivations. The efficiency-seeking motivation is mostly through the incentive to avert credit risk. The OFDI also tends to flow to economically stable countries. Our results indicate that the Chinese banks’ investment decisions are mainly in line with fundamental theories and are robust for different samples and periods.

Evolving Dimensions of Indian Outward Foreign Direct Investment

2014 ◽  
Vol 1 (2) ◽  
Author(s):  
Vandana Jain
Keyword(s):  
Foreign Direct Investment ◽  
Mergers And Acquisitions ◽  
Direct Investment ◽  
East Asian ◽  
Outward Foreign Direct Investment ◽  
Outward Fdi ◽  
South East Asian Region ◽  
East Asian Region ◽  
The Past ◽  
Emerging Trends

Post liberlisation regime of 1991, India became has become a lucrative investment avenue for overseas investors. At the same time, over the past decade or so, Indian companies have become competitive at the international level and have engaged in overseas investments and mergers and acquisitions abroad. The paper, in this perspective, attempts to highlight this emerging trends and patterns of India as an overseas investor. It presents the emerging trends and patterns of Indian Outward Foreign Direct Investment (FDI) during the post liberlisation regime, and showcases the growing significance of India as an overseas investor in the South East Asian region. The paper demonstrates an analytical overview of the evolving Outward FDI from India in terms of sectoral as well as geographical composition.

Outward Foreign Direct Investment, Restructuring and Performance Upgrading: Firm-level Evidence from Portugal

2020 ◽  
pp. 097215092091603
Author(s):  
Natália Barbosa
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Global Economy ◽  
Outward Foreign Direct Investment ◽  
Learning Effects ◽  
Micro Data ◽  
Outward Fdi ◽  
Export Intensity ◽  
Firm Level ◽  
And Performance

This article assesses the causal relationship between outward foreign direct investment (FDI) and various sides of firm performance, using micro data from Portuguese manufacturing firms during 2006–2014. To control for the possible endogeneity of outward FDI strategies, propensity score matching is combined with difference-in-difference approach. Our analysis shows that the learning effects for parent firms in Portuguese manufacturing depend on the underlying outward FDI strategy. The findings suggest that outward FDI could contribute to enhance firms’ productivity and their scale of operations. However, those learning effects seem to be mostly visible when firms engage in vertical outward FDI. Further, outward FDI, vertical or horizontal, appears to enhance the integration of Portuguese firms into the global economy through increased export intensity. From a managerial and policy perspective, the findings support the argument that outward FDI can indeed be at root of upgrading performance and firm’s restructuring in a small, open and peripheral economy such as Portugal.

Sign in / Sign up

Export Citation Format

Share Document