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Austrian FDI in Asian economies: Does knowledge capital matter?

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  • Dewa Gede Sidan Raeskyesa

Abstract

Purpose - While Austrian foreign direct investment (FDI) in Asian economies experiences a rising trend, the following question arises: Why does Austria invest more in certain economies over others? This study intends to assess the factors that drive Austrian investment in Asian economies. Design/methodology/approach - Based on the ownership, location and internalization framework and the knowledge capital approach, this study hypothesizes that knowledge capital significantly attracts FDI from Austria. Meanwhile, this study applies the panel-corrected standard error method to analyze data for 11 Asian economies from 1990 to 2022. Findings - After considering endogeneity, the results show a positive and significant correlation between expenditure in research and development per gross domestic product (GDP) in the host economies and FDI inflow from Austria. In addition, the study reveals that factors such as market size, trade openness and natural resources in the host economies significantly influence Austria’s FDI, which indicates that Austrian investors fall into the three main FDI typologies: market-seeking, resources-seeking and efficiency-seeking. Originality/value - This study fills the literature gap by becoming the first to analyze the determinants of Austrian FDI in Asian economies, thus enriching our understanding of Austria’s global investment pattern.

Suggested Citation

  • Dewa Gede Sidan Raeskyesa, 2024. "Austrian FDI in Asian economies: Does knowledge capital matter?," Journal of Asian Business and Economic Studies, Emerald Group Publishing Limited, vol. 31(5), pages 351-364, November.
    • Handle: RePEc:eme:jabesp:jabes-02-2024-0111
    DOI: 10.1108/JABES-02-2024-0111
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    More about this item

    Keywords

    Austria; Foreign direct investment; Knowledge capital; Panel data analysis; Asia; F21; F23; O38;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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