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Research output: Working paper
Research output: Working paper
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TY - UNPB
T1 - Is the evolution of India’s Outward FDI consistent with Dunning’s Investment Development Path sequence?
AU - Virmani, Swati
AU - Amann, Edmund
PY - 2015
Y1 - 2015
N2 - This paper examines whether India’s Outward Foreign Direct Investment (OFDI) pattern is consistent with Dunning’s Investment Development Path (IDP) sequence using macro data over the period 1980-2010. We test whether the level of development - proxied by GDP per capita - is the main factor explaining OFDI, and augment the IDP by studying other major determinants such as Exports, Inward FDI (IFDI), Human Capital, and R&D using the Cointegration and Error Correction Model techniques. Our results support the main proposition of the IDP, but also highlight the importance of other factors. We also find that OFDI Granger-causes R&D, suggesting a possibility of reverse technology spillover.
AB - This paper examines whether India’s Outward Foreign Direct Investment (OFDI) pattern is consistent with Dunning’s Investment Development Path (IDP) sequence using macro data over the period 1980-2010. We test whether the level of development - proxied by GDP per capita - is the main factor explaining OFDI, and augment the IDP by studying other major determinants such as Exports, Inward FDI (IFDI), Human Capital, and R&D using the Cointegration and Error Correction Model techniques. Our results support the main proposition of the IDP, but also highlight the importance of other factors. We also find that OFDI Granger-causes R&D, suggesting a possibility of reverse technology spillover.
KW - Outward FDI
KW - Investment Development Path
KW - Error Correction Model
KW - Granger Causality
KW - Reverse Technology Spillovers
M3 - Working paper
T3 - Economics Working Paper Series
BT - Is the evolution of India’s Outward FDI consistent with Dunning’s Investment Development Path sequence?
PB - Lancaster University, Department of Economics
CY - Lancaster
ER -