A comparison of FDI determinants in China and India

Zheng, P. 2009. A comparison of FDI determinants in China and India. Thunderbird International Business Review. 51 (3), pp. 263-279.

TitleA comparison of FDI determinants in China and India
AuthorsZheng, P.
Abstract

This study explores foreign direct investment (FDI) determinants in China and India and fills the gap in the literature by providing a comprehensive empirical comparison analysis. Two panel data sets and two statistical models are employed to identify the determinants of FDI inflows from home countries worldwide to the two host countries by considering both home and host countries' characteristics. The empirical results show some interesting similarities and differences between the two countries. Market growth, imports, labor costs, and country political risk/policy liberalization are the determinants for both countries. However, exports, market size, and borrowing costs are important to China's FDI, while geographical and cultural distance factors are important to India's FDI.

JournalThunderbird International Business Review
Journal citation51 (3), pp. 263-279
ISSN1096-4762
YearMay 2009
PublisherWiley
Digital Object Identifier (DOI)doi:10.1002/tie.20264
Publication dates
PublishedMay 2009

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Permalink - https://westminsterresearch.westminster.ac.uk/item/90q84/a-comparison-of-fdi-determinants-in-china-and-india


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