A comparative analysis of Indian and Chinese FDI into Africa: The role of governance and alliances

Surender Munjal, Sumati Varma () and Ankur Bhatnagar

Journal of Business Research, 2022, vol. 149, issue C, 1018-1033

Abstract: This paper adopts and extends the theoretical lens of institutional imprinting to international business research. It analyses a secondary data set on Indian and Chinese foreign direct investment (FDI) flows to Africa, compiled for the period ranging from 2008 to 2018, to highlight the distinctiveness of Indian FDI. It argues that Indian FDI streams into better governed host countries with controlled corruption and high standards of accountability. This is in striking contrast with Chinese FDI, which is impervious to host country governance standards in its geopolitical quest for gaining economic supremacy in the region. India’s membership of the Commonwealth (CW) plays a vital role in the location and volume of its investments to Africa, whereas the Chinese Belt and Road Initiative (BRI) wields no influence on the location of its investment.

Keywords: FDI; India; China; Africa; Commonwealth; BRI; Institutions; Alliances; Imprinting; Governance (search for similar items in EconPapers)
JEL-codes: F21 F23 O19 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:149:y:2022:i:c:p:1018-1033

DOI: 10.1016/j.jbusres.2022.05.087

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