Template-type: ReDIF-Paper 1.0
Author-Name: Tolentino, Paz Estrella
Author-Email: p.tolentino@bbk.ac.uk
Author-Workplace-Name: School of Management and Organizational Psychology
	 Birkbeck, University of London
Title: The determinants of the outward foreign direct investment of China
	 and India: Whither the home country?  
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.
Classification-JEL: F23, C32, C51
Keywords: outward FDI, home country, FDI determinants, China, India, MNCs,
	 VAR model, foreign direct investment, multinational corporations
Series: UNU-MERIT Working Papers
Creation-Date: 2008
Number: 2008-049
File-URL: https://unu-merit.nl/publications/wppdf/2008/wp2008-049.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2008049