FACTORS INFLUENCING INDIAN FIRMS DECISION MAKING IN FOREIGN DIRECT INVESTMENT IN AFRICA

Mukta Kukreja, Dr. Mahesh Chandra Joshi

Abstract


India’s economic progress and relations with other developing regions have received much attention, particularly the way in which Indo-African relations have evolved since 2000. This paper aims to put Indian FDI in Africa into perspective and provide some answers on the nature and possible impact of these flows to the continent. The study utilized the international typology offered by Dunning OLI paradigm to identify the important of Location Specific Advantages and how these advantages leads to selection of location for investment purposes by investors The study findings demonstrated that potential market growth, market opportunities and consumer base are the important indicated Indian firms targets Africa to seek new and unexplored markets of Africa. Competitiveness climate is important determinant along with economies of scale, investment incentives and availability of natural resources.

Keywords


Keywords: FDI, India, Multinational companies, Indo-Afro relations, Developing countries, OLI eclectic paradigm, African nations

Full Text:

PDF

References


Kogut, B. and Chang, S.J., 1991. Technological capabilities and Japanese foreign direct investment in the United States. The Review of Economics and Statistics, pp.401-413.

Deng, P., 2004. Outward investment by Chinese MNCs: Motivations and implications. Business horizons, 47(3), pp.8-16.

Khorana, S., Verousis, T. and Perdikis, N., 2010. Perceptions of export problems in EU-India Trade: Evidence from small and medium firms. In 12th Annual Conference of the European Trade Study Group, Lausanne, Switzerland. Retrieved from http://www. etsg. org/ETSG2010/ETSG2010Programme. html.

Sedat Aybar (2016) Determinants of Turkish outward foreign direct investment, Transnational Corporations Review, 8:1, 79-92, DOI: 10.1080/19186444.2016.1162486

Banga, R., 2009. Drivers of outward foreign direct investment from Asian developing economies. Towards Coherent Policy Frameworks―Understanding Trade and Investment Linkages. Bangkok: ESCAP.

Miyamoto, M., Lu, X. and Shimazaki, Y., 2011. Patterns and determinants of China's outward foreign direct investment in 2008. Journal of Accounting and Finance, 11(3), p.113.

Rosfadzimi, M. S., Abd Halim, M. N., & Abu Hassan, S. M. N. (2012). Outward foreign direct investment (OFDI) drivers in developing economies: A case of Malaysia. Business & Management Quarterly Review, 3(1), 26-34.

Caves, R. E. (1971). International corporations: The industrial economics of foreign investment. Economica, 38(149), 1-27. Retrieved December 20, 2012, from http://www.jstor.org.www. ezplib.ukm.my/

Dunning, J.H., Van Hoesel, R., & Narula, R. (1998). Third World multinationals revisited: New developments and theoretical implications.

In Dunning J.H. (Ed.), Globalization, trade and foreign direct investment (pp. 255–286), Amsterdam: Elsevier.

United Nations Conference on Trade and Development (UNCTAD)and European Commission (EC) (1996). Investing in Asia=s Dynamism: European Union Direct Investment

in Asia (Luxembourg: Office for Official Publications of the European Communities).

Aliber, R.Z. (1970), “A theory of foreign direct investment”, in Kindleberger, C.P. (Ed.), The International Corporation, MIT Press, Cambridge, MA.

Krykilis D., and Pantelidis P., (2003), “Macro Economic Determinants of Outward Foreign Direct Investment”, International Journal of Social Economics, Vol. 30, No. 7, pp 827-36 .

Markusen, J. R. (1995). The boundaries of multinational enterprises and the theory of international trade. Journal of Economic Perspectives, 9, 169-189.

Buckley, P. J., & Casson, M. (1981).The optimal timing of a foreign direct investment. Economic Journal, 91, 75-87.

Banga, R. (2007). Drivers of outward foreign direct investment from Asian Developing Economies. In Towards Coherent Trade Policy Frameworks: Understanding Trade and Investment Linkages, Studies in Trade and Investment (pp. 195-215). Thailand: UNESCAP. Retrieved October 10, 2009, from http://www.unescap.org/tid/artnet/ pub/tipub2469_chap7.pdf.

Alfaro, L. (2003). Foreign direct investment and growth: Does the sector matter. Harvard Business School, 1-31.

Auhukorala, Prema. (2009).Outward Foreign Direct Investment from India. Asian Development Review, 26, 125-153

Balasubramanyam. V.N. and Vidya Mahambre. (2003). Foreign Direct Investment in India, Working Paper No.2003/001, Department of Economics, Lancaster University Management School, International Business Research Group.




DOI: https://doi.org/10.32535/ijabim.v3i1.87

Refbacks

  • There are currently no refbacks.


Copyright (c) 2018 Mukta Kukreja, Dr. Mahesh Chandra Joshi

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Flag Counter

Published by : Association of International Business & Professional Management
Editorial Office:
Association of International Business and Professional Management (AIBPM) JL. Kahuripan No. 9 Hotel Sahid Montana, Malang, Indonesia
Phone: +62 341 366222
Email: infoaibpm@gmail.com
Website: http://aibpm.org/

ISSN 2614-7432 (Print)
ISSN 2621-2862 (Online)

International Journal of Applied Business and International Management INDEXED: