IDEAS home Printed from https://ideas.repec.org/a/oul/tncr09/v7y2015i3p335-352.html
   My bibliography  Save this article

Motives as Locational Determinants: A Study of FDI between India and LAC

Author

Listed:
  • Sumati Varma

    (Department of Commerce, Sri Aurobindo College (Eve), Delhi University)

  • Niti Bhasin

    (Department of Commerce, Delhi School of Economics)

  • Rishika Nayyar

    (Department of Commerce, PGDAV College, Delhi University, India)

Abstract

This paper addresses the issue of motives as locational determinants of foreign direct investment (FDI) flows from India to the Latin American region. India and the Latin America and Caribbean (LAC) have emerged as important centers of global FDI but have traditionally had insignificant FDI flows between them. The paper is a pioneering study examining motives of the newly emerging FDI relationship between India and the LAC region. The study uses a firm level data base across seven countries and multiple industries in an augmented gravity framework. It contributes to the literature on emerging markets as it concludes that FDI flows from India to the LAC are both asset seeking and asset exploiting, bridging the gap between traditional and modern explanations of FDI. Using a negative binomial regression model the study establishes that FDI flows dominate from the information technology and pharmaceutical industries and are market-seeking for nearshore advantages to the USA and strategic asset seeking for patents and technology.

Suggested Citation

  • Sumati Varma & Niti Bhasin & Rishika Nayyar, 2015. "Motives as Locational Determinants: A Study of FDI between India and LAC," Transnational Corporations Review, Ottawa United Learning Academy, vol. 7(3), pages 335-352, September.
    • Handle: RePEc:oul:tncr09:v:7:y:2015:i:3:p:335-352
    as

    Download full text from publisher

    File URL: http://tnc-online.net/journal/html/?551.html
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nayyar, Rishika & Mukherjee, Jaydeep, 2020. "Home country impact on Outward FDI from India," Journal of Policy Modeling, Elsevier, vol. 42(2), pages 385-400.
    2. Rishika Nayyar & Jaydeep Mukherjee, 2018. "Outward FDI from India: A macro level examination in the presence of structural breaks," Working Papers 1833, Indian Institute of Foreign Trade.
    3. Niti Bhasin & Amit Soni & Rabi Narayan Kar, 2021. "Do Institutional and Macroeconomic Factors Matter in IT companies M&As? Evidence from India," Business Perspectives and Research, , vol. 9(2), pages 286-305, May.
    4. Amit Soni & Avinash Chandra & Sumati Varma, 2020. "Impact of M&As on Employment in the Indian Information Technology (IT) Industry," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 63(2), pages 311-329, June.
    5. Sheeba Kapil & Puneet Kaur Dhingra, 2021. "Flagging Determinants for Indian Outbound M&A," International Journal of Economics and Financial Issues, Econjournals, vol. 11(5), pages 1-10.
    6. Lucía Gómez & Päivi Oinas & Ronald Sean Wall, 2022. "Undercurrents in the world economy: Evolving global investment flows in the South," The World Economy, Wiley Blackwell, vol. 45(6), pages 1830-1855, June.

    More about this item

    Keywords

    Motives; location; FDI; India; LAC; asset seeking; asset exploiting;
    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
    • N76 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Latin America; Caribbean

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oul:tncr09:v:7:y:2015:i:3:p:335-352. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Denny Liao or Jen Ma (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.