Testing the Asset-seeking Hypothesis:through the Investments of Chinese and Indian Firms in Europe

He Yong () and Zhou Hong
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He Yong: University of Auvergne, Postal: CERDI/CNRS, University of Auvergne, 65 Bd. F. Mitterrand, 63000 Clermont-Ferrand, France
Zhou Hong: Fudan University, Postal: School of Management, Fudan University

Journal of Economic Integration, 2012, vol. 27, 564-583

Abstract: We use the investments of Chinese and Indian MNCs in Europe to test the hypothesis that the main motivation of the Southern MNCs for investing in the Northern countries is asset- or technology- seeking. After showing that the previous work has not adequately tested this hypothesis due to its use of country-level FDI flow data, we conduct our tests with count data models tests. The results reveal that this motivation for Chinese MNCs is strong, whereas Indian MNCs, due to their excessive concentration in the UK and in software sector, have a weaker asset-seeking motivation than Chinese MNCs.

Keywords: Location Strategy; China; India; The Southern MNC; Asset-seeking FDI; Europe (search for similar items in EconPapers)
JEL-codes: F21 F23 O52 O57 (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:ris:integr:0586

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