What drives India's outward FDI?

Arbeitspapier

We empirically assess the determinants of India's FDI outflows across a large sample of host countries in the 1996-2009 period. Based on gravity model specifications, we employ Poisson pseudo maximum likelihood (PPML) estimators. Major findings include: India's outward FDI is hardly affected by motives to access raw materials or superior technologies. Market-related factors appear to have dominated the location choices of Indian direct investors. A larger Indian diaspora in the host countries attracts more FDI. Finally, it seems that Indian direct investors are relatively resilient to weak institutions and economic instability in the host countries. However, we do not find robust evidence that India provides an alternative source of FDI for countries that traditional investors tend to avoid.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Kiel Working Paper ; No. 1800

Classification and Topics

• Classification: Wirtschaft ; International Investment; Long-term Capital Movements
• Subject: FDI outflows ; gravity model ; PPML ; India

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Nunnenkamp, Peter ; Sosa Andrés, Maximiliano ; Vadlamannati, Krishna Chaitanya ; Waldkirch, Andreas
• Event: Veröffentlichung
• (who): Kiel Institute for the World Economy (IfW)
• (where): Kiel
• (when): 2012

Further information

• Handle: http://hdl.handle.net/10419/67336
• Last update: 10.03.2025, 11:43 AM CET