Indian Journal of Industrial Relations: Economics & Social Dev.

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Role of Home Country Determinants in Outward Foreign Direct Investment


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1 PhD Candidate (Faculty of Economics), University of Ljubljana,, Slovenia
     

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In the last few decades there has been a rapid increase in capital flows across countries because of liberali zation, deregulation and market opening mechanisms. This paper investigates the home country determinants of outward capital flows during the period 1996 2016 f or f our mai n count ry groupings;viz., advanced, emergingmarket, developing and transit i on economi e s. The empi ri cal analysis is based on Dunning’s Investment Development Path (IDP) paradigm, according to which a country’s capital flows (inward and outward) are tied to its economic development relative to that of the rest of the world. The results support the IDP theory, but also highlight the importance of other factors, such as economic development, inward capital flows, trade, innovations and telecommunications affecting the capital outflows.



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  • Role of Home Country Determinants in Outward Foreign Direct Investment

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Authors

Minakshee Das
PhD Candidate (Faculty of Economics), University of Ljubljana,, Slovenia

Abstract


In the last few decades there has been a rapid increase in capital flows across countries because of liberali zation, deregulation and market opening mechanisms. This paper investigates the home country determinants of outward capital flows during the period 1996 2016 f or f our mai n count ry groupings;viz., advanced, emergingmarket, developing and transit i on economi e s. The empi ri cal analysis is based on Dunning’s Investment Development Path (IDP) paradigm, according to which a country’s capital flows (inward and outward) are tied to its economic development relative to that of the rest of the world. The results support the IDP theory, but also highlight the importance of other factors, such as economic development, inward capital flows, trade, innovations and telecommunications affecting the capital outflows.



References