Home Country Determinants of Outward FDI from Developing Countries

Das, Khanindra Ch.

doi:10.1177/0973801012466104

Cited by 41 publications

(54 citation statements)

References 43 publications

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“…According to Noorbakhsh et al (2001), open economies whether small or not show more confidence and encourage foreign investments. According to Das (2013), the openness of countries influences FDI positively. By expanding their trade activities countries give domestic firms the opportunity to gain knowledge about foreign countries and their markets.…”

Section: Trade Opennessmentioning

confidence: 99%

“…According to Yu & Walsh (2010), countries with a weak real exchange rate attract more vertical FDI, because this can be an advantage to firms as low prices in host markets are used to buy facilities and obtain more home-country profits on goods that are sent to third markets. Das (2013) points out that a strong currency favors outward investment since it gives investors the ability to buy more. If the home country currency appreciates, the capital requirements of foreign investors in domestic currency are in this case lower which makes it easier for these investors to raise capital than in the case of a depreciating currency.…”

Section: Exchange Rate Valuationmentioning

confidence: 99%

“…This can lead to bypassing local laws and regulations or other corrupt practices just to secure the most investments for their own market. Das (2013) points out that poor institutional factors in a country such as high tax rates, corruption, regulatory uncertainty, government interference and insufficient protection of property rights can lead investors to look for other countries to invest in with better institutions. Despite the world crisis, global foreign direct investment flows reached at least USD 1.5 trillion.…”

Section: Quality Of Institutionsmentioning

confidence: 99%

See 2 more Smart Citations

Assessing a Causal Relationship Between Foreign Direct Investment and Human Capital: The Case of the Netherlands

Pinas¹,

Sun²,

Oppong-Baah³

et al. 2019

IBR

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Foreign direct investment is seen by many countries as an important source of capital. The flow of foreign direct investment in the world has been increasing over the past couple of years and many countries have adopted various institutional policies with the hope of attracting more foreign direct investment. Besides capital, these countries also get to benefit from the other advantages that these investments bring with them, such as the newest technology and managerial skills. FDI, besides boosting capital formation, also increases the quality of capital stock. Countries can only reap all the benefits of foreign direct investment if they have a sufficient amount of human capital. Human capital is seen by many researchers as one of the most important determinants of FDI. With the world becoming more knowledge-based and globalized the importance of human capital became very significant not only to individuals, but also to countries in their competitive advantages. The purpose of this research is to find out what the relationship is between foreign direct investment and human capital in the Netherlands. The Netherlands is a small country in Europe which has been a global leader in the inflow and outflow of FDI the past couple of years. This study uses the Augmented Dickey-Fuller test and the Johansen cointegration test to determine whether or not there is a causal relationship between the variable’s foreign direct investment and secondary school enrollment, which is used as a proxy for human capital. The study observed that there is no causal relationship between foreign direct investment and human capital in the Netherlands. The inflow of human capital into the Netherlands is determined by other factors.

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Section: Trade Opennessmentioning

confidence: 99%

Section: Exchange Rate Valuationmentioning

confidence: 99%

Section: Quality Of Institutionsmentioning

confidence: 99%

See 1 more Smart Citation

Assessing a Causal Relationship Between Foreign Direct Investment and Human Capital: The Case of the Netherlands

Pinas¹,

Sun²,

Oppong-Baah³

et al. 2019

IBR

View full text Add to dashboard Cite

show abstract

“…The types of policy prescription needed to address these distortions could help to mitigate the negative impact of outward FDI, and, in some cases, to boost domestic saving and investment. Das (2013) finds that the source country's level of economic development, globalization, political risk and science and technology investments contribute significantly to outward FDI from developing countries. While outward FDI might be unavoidable in the course of economic development and globalization, developing countries need to emphasis improving political governance in order to prevent capital outflow arising out of high domestic political risk.…”

Section: Literature Reviewmentioning

confidence: 99%

Outward Foreign Direct Investment and Economic Development – A Developing Countries’ Study

Bhanumurthy

Sinha

2015

MUDRA

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Outward FDI is considered as a developed countries phenomenon. However FDI outflows from developing countries particularly Asian countries such as China and India have been growing over the past few decades. The paper focuses on outward FDI from developing countries in terms of outflows and outward stock. The paper studies the impact of socio-economic variables such as infrastructure, human capital, labour, market, trade openness, resources etc. on FDI outflows from developing countries. With the help of Principal Component Analysis, we construct a set of six composite indices, namely, human resource, infrastructure, labour, market, trade openness and resource, as determinants of OFDI. We use a Panel Regression approach both in terms of OFDI stock and flow, for the period 1990-2009. Outward FDI flows from developing countries do not show a significant pattern. FDI outward stock from developing countries represents stable patterns. It shows that steadily this is growing at 4.4 percent per annum, although the initial level is low. Top ten countries show a significant growth rate of 8 percent per annum, in the case of outward stock. Infrastructure is the only single variable whose elasticity is slightly over one in the case of top ten countries and is highly significant. Therefore, the FDI outflow is going from those countries amongst developing countries that have a significant infrastructure base.

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“…For rapid developing economies, literature is extremely gathered at main subjects such as FDI, NFL, technology transfer, labor force and sensibility against shocks. Generally, FDI make a positive result about developments for the economic development, globalization and science and technology in the developing economies (Das, 2013). This effect also shows a high level for the BRICS economies.…”

Section: Literature Reviewmentioning

confidence: 99%

The Effects of BRICS and MATIK Counties on world Economy and Cointegration Analysis the Long Term relation With G-7 Growth Rates (1962-2012)

Kargi¹

2014

JEBS

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In this article, long term data is analyzed for the total growth of the world economy and the growth of developed (G7) and of the rapid developing economies. BRICS countries are known countries with their meetings since 2008. Rapidly developing countries such as Mexico, Argentina, Turkey, Indonesia and Korea are defined as MATIKin thisanalysisexceptthecountriesfor BRICS meeting. Especially, the basic hypotheses of this study is that BRICS+MATIK countries whose economic shares slowly increase were compared with G-7 and the global economy, i) Help of BRICS+MATIK economies rapidly increase for the growth rate of world economy: ii)They're the hypotheses that BRICS+MATIK economies are cointegrated with the growth of world economy in long term. In this way, it may be possible that the help of G-7 is compared with the help of BRICS+MATIK economies for the growth of world economy. The study uses the annual data of the 1962-2012 periods. Time series analysis is used to test the hypotheses. The most important finding is that BRICS+MATIK economies affect the growth rate of world economy, and it constantly increases as statistic according to the help of G-7.The result has been acquired that World, G-7, and BRICS+MATIK economies cointegrated in the long term.

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Home Country Determinants of Outward FDI from Developing Countries

Cited by 41 publications

References 43 publications

Assessing a Causal Relationship Between Foreign Direct Investment and Human Capital: The Case of the Netherlands

Assessing a Causal Relationship Between Foreign Direct Investment and Human Capital: The Case of the Netherlands

Outward Foreign Direct Investment and Economic Development – A Developing Countries’ Study

The Effects of BRICS and MATIK Counties on world Economy and Cointegration Analysis the Long Term relation With G-7 Growth Rates (1962-2012)

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