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The Directionality of Outward FDI and Its Determinants - Findings From Asian Emerging Countries

Author

Listed:
  • Pragyanrani Behera
  • Prajukta Tripathy
  • Bikash Ranjan Mishra

    (Humanities and Social Sciences Department, National Institute of Technology, India)

Abstract

This study investigates the determinants of outward foreign direct investment (OFDI) for eight emerging Asian source countries vis-Ã -vis 107 host countries from 2009 to 2016. We employ Bayesian model averaging and the weighted average least squares technique to address the problem of model uncertainty. Our findings reveal that the OFDI position of Asian emerging countries targets developed countries for market- and asset-seeking purposes, emerging countries for market seeking, and most resource-seeking investments are directed to other developing countries.

Suggested Citation

  • Pragyanrani Behera & Prajukta Tripathy & Bikash Ranjan Mishra, 2021. "The Directionality of Outward FDI and Its Determinants - Findings From Asian Emerging Countries," Asian Economics Letters, Asia-Pacific Applied Economics Association, vol. 3(Early Vie), pages 1-6.
    • Handle: RePEc:ayb:jrnael:54
    DOI: 2021/12/05
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    References listed on IDEAS

    as
    1. Kefei You, 2017. "What Drives Outward Fdi Of China? A Regional Analysis," Journal of Developing Areas, Tennessee State University, College of Business, vol. 51(2), pages 239-253, April-Jun.
    2. Jaya Prakash Pradhan, 2011. "Emerging Multinationals: A Comparison of Chinese and Indian Outward Foreign Direct Investment," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 3(1), pages 113-148, April.
    3. Swati Virmani & Edmund Amann, 2015. "Is the evolution of India’s Outward FDI consistent with Dunning’s Investment Development Path sequence?," Working Papers 92160912, Lancaster University Management School, Economics Department.
    4. Bruce Blonigen, 2005. "A Review of the Empirical Literature on FDI Determinants," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 33(4), pages 383-403, December.
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    Cited by:

    1. Makram El-Shagi & Bashir Muhammad, 2024. "Institutional Similarity and Bilateral FDI," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 4605-4638, March.

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    More about this item

    Keywords

    model averaging; asian emerging countries; fdi determinants;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • N25 - Economic History - - Financial Markets and Institutions - - - Asia including Middle East
    • L72 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Other Nonrenewable Resources

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