Home Country-Specific Determinants of Outward Foreign Direct Investment in Developing Economies

2020 ◽  
pp. 843-860
Author(s):  
Rıfat Karakuş
Keyword(s):  
Foreign Direct Investment ◽  
Interest Rates ◽  
Direct Investment ◽  
Home Country ◽  
Developing Economies ◽  
Panel Data Analysis ◽  
Outward Foreign Direct Investment ◽  
Outward Fdi ◽  
Total Labor ◽  
Country Specific

The outward foreign direct investments of developing economies have showed significant increase in recent years. Rising outward foreign direct investment stock of developing economies makes its determinants and consequences crucial. The aim of this study is to determine the home country specific determinants of outward FDI. For this purpose, a panel data analysis is performed with the data of BRICS and Next Eleven countries for the period from 1994 to 2014. The analysis results reveal that inward foreign direct investment, interest rates and technological capability of home country have positive influence and total labor force of home country has negative effect on outward FDI of developing economies.

Home Country-Specific Determinants of Outward Foreign Direct Investment in Developing Economies

2017 ◽  
pp. 59-76
Author(s):  
Rıfat Karakuş
Keyword(s):  
Foreign Direct Investment ◽  
Interest Rates ◽  
Direct Investment ◽  
Home Country ◽  
Developing Economies ◽  
Panel Data Analysis ◽  
Outward Foreign Direct Investment ◽  
Outward Fdi ◽  
Total Labor ◽  
Country Specific

The outward foreign direct investments of developing economies have showed significant increase in recent years. Rising outward foreign direct investment stock of developing economies makes its determinants and consequences crucial. The aim of this study is to determine the home country specific determinants of outward FDI. For this purpose, a panel data analysis is performed with the data of BRICS and Next Eleven countries for the period from 1994 to 2014. The analysis results reveal that inward foreign direct investment, interest rates and technological capability of home country have positive influence and total labor force of home country has negative effect on outward FDI of developing economies.

scholarly journals Export Effect of China’s Outward FDI: Provincial Panel Data Analysis

2017 ◽  
Vol 10 (7) ◽  
pp. 148
Author(s):  
Xiaohui Wang
Keyword(s):  
Foreign Direct Investment ◽  
Panel Data ◽  
Direct Investment ◽  
Large Scale ◽  
Panel Data Analysis ◽  
Great Influence ◽  
Outward Foreign Direct Investment ◽  
Method Of Moment ◽  
Outward Fdi ◽  
Positive Effect

China’s direct investment overseas reaches US$170.11 billion and is US$44 billion more than the actual use of foreign investment, which makes China a net capital exporter. Large scale of Outward Foreign Direct Investment also has a great influence on the export. This article made an estimation on the export effect of Outward Foreign Direct Investment through fixed effect model and Generalized Method of Moment based on the provincial panel data from 2004 to 2014. The result shows Outward Foreign Direct Investment has a positive effect on export whether in the whole country or in different districts, every 1% increase of Outward Foreign Direct Investment will lead to about 0.1% rising in export, and moreover positive effect of Outward Foreign Direct Investment in the middle and western districts is stronger than that in the eastern district.

scholarly journals The Impact of Outward FDI on the Upgrading of China’s Manufacturing Industry Structure: A Literature Review

2017 ◽  
Vol 9 (6) ◽  
pp. 154 ◽  
Author(s):  
Shuyuan Jiang ◽  
Dan Cheng
Keyword(s):  
Direct Investment ◽  
Manufacturing Industry ◽  
Industrial Structure ◽  
Home Country ◽  
Industry Structure ◽  
Outward Foreign Direct Investment ◽  
Outward Fdi ◽  
Pillar Industry ◽  
The Impact ◽  
The Relationship

Since China put forward the strategy of “going out”, outward foreign direct investment (FDI) began to grow rapidly, and the manufacturing industry, as the pillar industry of our country, is facing the dilemma of transformation. This paper will focus on this topic of the relationship between the outward FDI and upgrading of China’s manufacturing industry structure, and sort out and summarize the domestic and foreign literature. It is concluded that the existing literatures are consistent: the outward FDI can promote the upgrading of industrial structure of home country. In terms of China’s manufacturing industry, the outward FDI can promote the upgrading of China’s manufacturing industry, however, the impact have a kind of hysteresis quality, and may produce the phenomenon of “industry hollowing out”.

scholarly journals Emerging Economy Inward and Outward Foreign Direct Investment: A Bibliometric and Thematic Content Analysis

2021 ◽  
Author(s):  
Keilla Dayane da Silva-Oliveira ◽  
Edson Keyso de Miranda Kubo ◽  
Michael J. Morley ◽  
Rodrigo Médici Cândido
Keyword(s):  
Foreign Direct Investment ◽  
Performance Analysis ◽  
Emerging Economies ◽  
Thematic Analysis ◽  
Direct Investment ◽  
Institutional Environment ◽  
Emerging Economy ◽  
Future Research ◽  
Outward Foreign Direct Investment ◽  
Outward Fdi

AbstractResearch examining emerging economy inward and outward foreign direct investment (FDI) flows is on a significant upward trajectory. In this bibliometric analysis covering 806 articles published between 1994 and 2019, we map key aspects of its contours. Our analysis proceeds in two sequential phases involving a performance analysis, followed by a thematic analysis. Our performance analysis unveils fundamental elements of the structure of the knowledge base. Our subsequent thematic analysis identifies three focal topics arising from identifiable shared qualities characterizing this literature. Firstly, we distinguish scholarship focused on inward FDI into emerging economies formed by two particular classes, namely ‘innovative FDI’ and ‘capital flows’. Our second theme covers outward FDI from these emerging economies and also comprises two specific classes referring to the ‘institutional environment’ and the ‘theoretical framework deployed’. Our final theme relates to an integrated body of knowledge explicating aspects of the location choice decision. Building on this analysis, we isolate a number of opportunities for future research.

scholarly journals Just Look behind the Data! Czech and Hungarian Outward Foreign Direct Investment and Multinationals

2019 ◽  
Vol 69 (S2) ◽  
pp. 73-105 ◽  
Author(s):  
Magdolna Sass ◽  
Jana Vlčková
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Transition Process ◽  
Balance Of Payments ◽  
Foreign Direct Investments ◽  
Outward Foreign Direct Investment ◽  
Outward Fdi ◽  
Foreign Investors ◽  
The Czech Republic ◽  
Main Factors

There has been an increase in outward foreign direct investment (FDI) and in the number of locally-owned or controlled multinationals in the Czech Republic and Hungary. However, data problems hinder to determine accurately the underlying trends and the main factors behind the changes. Data on outward FDI contain investment realised by all locally operational firms, regardless of their ownership. We rely on newly available balance of payments manual 6 (BPM) data and on company case studies. We show that outward investment by Czech firms must be much higher than what balance of payments data show. Hungary's case is the opposite. The leading Czech and Hungarian foreign investor firms can be categorised as “virtual indirect” foreign investors: they are in majority foreign ownership, but under domestic control. The reason for this special type of firms dominating in outward foreign direct investments can be found in the privatisation technique applied in these countries during the transition process.

scholarly journals Export Structure Effect of Outward FDI of Sichuan Province of China

2018 ◽  
Vol 10 (9) ◽  
pp. 181
Author(s):  
Xiaohui Wang
Keyword(s):  
Foreign Direct Investment ◽  
Panel Data ◽  
Direct Investment ◽  
Sichuan Province ◽  
Structure Effect ◽  
Sufficient Evidence ◽  
Outward Foreign Direct Investment ◽  
Outward Fdi ◽  
Effect Analysis ◽  
Export Structure

This paper made an export structure effect analysis of outward foreign direct investment of Sichuan Province of China using the method of OLS and GMM with the provincial panel data of ordinary export from 2004 to 2016. The empirical results indicate that Outward Foreign Direct Investment can affect ordinary export positively both in China and in Sichuan Province. With each 1% increase of outward foreign direct investment, China’s ordinary exports increased by 0.344%, while Sichuan’s ordinary exports increased by 0.483%. Furthermore, this paper indicates that outward foreign direct investment leads to the upgrading of export structure in China. But, this paper can’t find sufficient evidence that Sichuan’s Outward Foreign Direct Investment can promote export structure.

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: A Novel Dimension of China's Integration into the Regional and Global Economy

1999 ◽  
Vol 160 ◽  
pp. 856-880 ◽  
Author(s):  
Kevin G. Cai
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Global Economy ◽  
International Political Economy ◽  
Developing Economies ◽  
The United States ◽  
Future Trend ◽  
Open Door Policy ◽  
Outward Fdi ◽  
Existing Problems

It is now receiving wide attention that since the adoption of the open-door policy at the end of the 1970s China has been extremely successful in attracting foreign direct investment (FDI). Particularly, according to UNCTAD's World Investment Report 1997: Transnational Corporations, Market Structure and Competition Policy, China has become the second largest recipient of FDI in the world since 1993, after the United States. On the other hand, however, it seems less noticed that China has also become a growingly important FDI exporting country. According to UNCTAD's same report, China now ranks as one of the largest outward investors among developing economies in the 1990s. By the end of 1996, the cumulative stock of Chinese outward FDI had reached over $18 billion, next only to Hong Kong ($112 billion), Singapore ($37 billion) and Taiwan ($27 billion). Consequently, China increased its share in world-wide FDI outflows from less than 0.5 per cent until 1991 to an average of 1.3 percent in 1991–95. As China is rapidly rising as a new economic power, its deepening participation in the regional and global economy, through both inward and outward FDI as well as trade, will inevitably bring about significant implications in the international political economy. This article attempts to explore the development of Chinese outward FDI, its characteristics and motives, the outward FDI regime, the government's policies and existing problems, and the prospects for the future trend of Chinese outward FDI.

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