 An Analysis of the Macroeconomic Determinants of Indian Outward Foreign Direct InvestmentRakhi Verma and Louis Brennan Chapter 6 in Emerging Economies and Firms in the Global Crisis, 2013, pp 137-153 from Palgrave Macmillan Abstract: Abstract The growth of international business facilitates foreign direct investment (FDI) and is driven by economic and technological factors. While foreign investors benefit by utilizing their assets and resources efficiently through FDI, the recipients benefit by acquiring technologies and by getting involved in international production and trade networks. It is now widely recognized that economic uncertainties compel a firm to look for markets in other geographical locations. For example, an unstable exchange rate, high interest rate, poor human capital, restrictions on trade and technological backwardness of the country all contribute to the increased cost of production in the home market. Because of the higher production cost, firms may engage in FDI to exploit location advantages of a country. This phenomenon is increasingly being observed in emerging markets, including India. Keywords: Exchange Rate; Interest Rate; Human Capital; Foreign Direct Investment; Gross Domestic Product (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-27747-3_6 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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