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    The determinants of the outward foreign direct investment of China and India: whither the home country?

    Tolentino, Paz Estrella (2008) The determinants of the outward foreign direct investment of China and India: whither the home country? Working Paper. United Nations University-Maastricht Economic and Social Research and Training Centre on Innovation and Technology (UNU-MERIT).

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    Abstract

    The current study examines the relationships between several home country-specific macroeconomic factors and the level of the outward FDI of China and India using multiple time-series data from 1982 to 2006 and from 1980 to 2006, respectively. With the use of a vector autoregressive model assessing the causal relationships of the endogenous variables, the empirical research proves that Chinese national characteristics associated with income per capita, openness of the economy to international trade, interest rate, human capital, technological capability, exchange rate and exchange rate volatility do not Granger cause the level of outward FDI of China. By contrast, the national technological capability of India Granger causes their level of outward FDI. The level of outward FDI of China does not Granger cause any of the home country-specific macroeconomic factors considered, while the level of outward FDI of India Granger causes their national interest rate.

    Metadata

    Item Type: Monograph (Working Paper)
    Additional Information: UNU-MERIT Working Paper 2008-049 JEL codes: F23, C32, C51 UNU-MERIT Working Papers, ISSN: 1871-9872
    Keyword(s) / Subject(s): outward FDI, home country, FDI determinants, Chinese MNCs, Indian MNCs, VAR model
    School: Birkbeck Schools and Departments > School of Business, Economics & Informatics > Management
    Depositing User: Sarah Hall
    Date Deposited: 23 Oct 2014 09:49
    Last Modified: 23 Oct 2014 09:49
    URI: http://eprints.bbk.ac.uk/id/eprint/10772

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