Role of Home Country Determinants in Outward Foreign Direct Investment
Published: 2020
Author(s) Name: Minakshee Das |
Author(s) Affiliation: PhD Candidate (Faculty of Economics), University of Ljubljana, Slovenia
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Abstract
In the last few decades there has
been a rapid increase in capital
flows across countries because of
liberali zation, deregulation and
market opening mechanisms. This
paper investigates the home country
determinants of outward capital
flows during the period 1996 -
2016 f or f our mai n count ry
groupings;viz., advanced, emerging-
market, developing and transit
i on economi e s. The empi ri cal
analysis is based on Dunning’s Investment
Development Path (IDP)
paradigm, according to which a
country’s capital flows (inward and
outward) are tied to its economic
development relative to that of the
rest of the world. The results support
the IDP theory, but also highlight
the importance of other factors,
such as economic development,
inward capital flows, trade,
innovations and telecommunications
affecting the capital outflows.
Keywords: N.A.
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