Location choice and Indian outward foreign direct investment: institutional thresholds and differentiating between institutional quality and institutional distance
Rishika Nayyar,
John M. Luiz
Abstract:Institutions matter as regards foreign location investment decisions, but how they matter and in what ways, is still unsettled. We differentiate between absolute and relative institutional effects on both location choice and on the size of the FDI and do so by examining India's outward FDI flows between 2008 and 2020. We find that absolute and relative institutional measures have different effects, and these are noticeable at different stages. We show that the quality of institutions affects location choice, b… Show more
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