What Drives India's Outward FDI?

Can import tariffs deter outward FDI ?

In this paper we analyze a country’s optimal trade policy when its labor market is unionized and firms are footloose. We show that an important objective for governments to use import protection is to prevent their domestic multinationals to go to a non-unionized location abroad and to serve their country from a distance. A domestic government will set a positive tariff to dissuade its multinat...

FDI & Growth : What Causes What ?

The paper examines the causal relationship between FDI and economic growth by using an innovative econometric methodology to study the direction of causality between the two variables. We apply our methodology, based on the Toda-Yamamoto test for causality, to time-series data covering the period 19692000 for three developing countries, namely Chile, Malaysia and Thailand, all of them major rec...

What drives FDI from non-traditional sources? A comparative analysis of the determinants of bilateral FDI flows

Non-traditional source countries of FDI play an increasingly important role, notably in developing host countries. This raises the question of whether the location choices differ systematically between traditional and non-traditional source countries. We perform Logit and Poisson Pseudo Maximum Likelihood estimations to assess the determinants of bilateral FDI flows. We find that economic geogr...

On the Role of Distance for Outward FDI

This paper focuses on the estimation of three distance-related effects on outward FDI. (i) Distance harms vertical multinationals, since they engage in trade. (ii) It makes non-trading multinationals better off than exporters. (iii) This positive effect on horizontal FDI is expected to rise with bilateral country size due to the home market effect. The use of panel data and related econometric ...

Outward Fdi and the Economic Performance of Emerging