Is the evolution of India’s Outward FDI consistent with Dunning’s Investment Development Path sequence?

Edmund Amann, Swati Virmani

Research output: Working paper

Abstract

This paper examines whether India’s Outward Foreign Direct Investment (OFDI) pattern isconsistent with Dunning’s Investment Development Path (IDP) sequence using macro data overthe period 1980-2010. We test whether the level of development - proxied by GDP per capita - isthe main factor explaining OFDI, and augment the IDP by studying other major determinantssuch as Exports, Inward FDI (IFDI), Human Capital, and R&D using the Cointegration andError Correction Model techniques. Our results support the main proposition of the IDP, butalso highlight the importance of other factors. We also find that OFDI Granger-causes R&D,suggesting a possibility of reverse technology spillover.
LanguageEnglish
PublisherLancaster: Lancaster University
Pages1-39
Number of pages39
Publication statusPublished - 2015
Externally publishedYes

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India
Outward FDI
Investment Development Path
Outward foreign direct investment
Factors
GDP per capita
Technology spillovers
Human capital
Cointegration

Cite this

Amann, E., & Virmani, S. (2015). Is the evolution of India’s Outward FDI consistent with Dunning’s Investment Development Path sequence? (pp. 1-39). Lancaster: Lancaster University.
Amann, Edmund ; Virmani, Swati. / Is the evolution of India’s Outward FDI consistent with Dunning’s Investment Development Path sequence?. Lancaster: Lancaster University, 2015. pp. 1-39
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Amann, E & Virmani, S 2015 'Is the evolution of India’s Outward FDI consistent with Dunning’s Investment Development Path sequence?' Lancaster: Lancaster University, pp. 1-39.

Is the evolution of India’s Outward FDI consistent with Dunning’s Investment Development Path sequence? / Amann, Edmund; Virmani, Swati.

Lancaster: Lancaster University, 2015. p. 1-39.

Research output: Working paper

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