publication . Article . 2012

FOREIGN DIRECT INVESTMENT OUTFLOWS FROM CHINA AND INDIA

K. C. Fung; Alicia Garcia-Herrero;
Open Access
  • Published: 01 Jan 2012 Journal: China Economic Policy Review, volume 1, issue 1, pages 1,250,003-1
Abstract
In this paper, we examine the determinants of Indian and Chinese FDI outflows. There are three sets of results. First, Chinese investment is attracted to more corrupt countries, while India is attracted to economies with better rule of law. Further analysis suggests that our result of China investing in more corrupt destinations is mostly driven by Chinese investment in the sub-sample of African countries. While we do not conduct economic welfare analysis, several studies in the literature reported that China's investment in Africa contributed to increased Asia–Africa trade and narrowing of the infrastructure deficits of the sub-Saharan African economies. Second...
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free text keywords: Indian outward FDI, Chinese outward FDI, institutions, Destinations, Economic welfare, International economics, Foreign direct investment, Economics, Rule of law, Economic system, China
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