Home Country Determinants of Outward FDI: A Study of Select Asian Economies

2013 ◽  
Author(s):  
Niti Bhasin ◽  
Vandana Jain
Keyword(s):  
Home Country ◽  
Outward Fdi ◽  
Asian Economies

scholarly journals The Impact of Outward FDI on the Upgrading of China’s Manufacturing Industry Structure: A Literature Review

2017 ◽  
Vol 9 (6) ◽  
pp. 154 ◽  
Author(s):  
Shuyuan Jiang ◽  
Dan Cheng
Keyword(s):  
Direct Investment ◽  
Manufacturing Industry ◽  
Industrial Structure ◽  
Home Country ◽  
Industry Structure ◽  
Outward Foreign Direct Investment ◽  
Outward Fdi ◽  
Pillar Industry ◽  
The Impact ◽  
The Relationship

Since China put forward the strategy of “going out”, outward foreign direct investment (FDI) began to grow rapidly, and the manufacturing industry, as the pillar industry of our country, is facing the dilemma of transformation. This paper will focus on this topic of the relationship between the outward FDI and upgrading of China’s manufacturing industry structure, and sort out and summarize the domestic and foreign literature. It is concluded that the existing literatures are consistent: the outward FDI can promote the upgrading of industrial structure of home country. In terms of China’s manufacturing industry, the outward FDI can promote the upgrading of China’s manufacturing industry, however, the impact have a kind of hysteresis quality, and may produce the phenomenon of “industry hollowing out”.

scholarly journals Outward FDI and Institutional Factors: Malaysian Experience

2016 ◽  
Vol 4 (3) ◽  
pp. 37
Author(s):  
Jen-Eem Chen ◽  
Lee Chin ◽  
Siong-Hook Law ◽  
W. N. W. Azman- Saini
Keyword(s):  
Home Country ◽  
Model Specification ◽  
International Expansion ◽  
Outward Fdi ◽  
Bounds Testing ◽  
Corporate Tax ◽  
Tax Rate ◽  
Distributed Lag ◽  
Internationalization Strategy ◽  
Using Data

This paper aims to investigate the role of home country institution in affecting outward FDI from Malaysia using data spans from 1980 to 2012.  The model specification is examined in autoregressive distributed lag (ARDL) bounds testing framework.  The empirical evidence reveals that GDP, exchange rate, openness to trade, and corporate tax rate are the key drivers of outward FDI from Malaysia.  This portrays that internationalization strategy of firms is not only relied on home macroeconomic environment, but also home institution.  More importantly, corporate tax rate, as one of the institution factors, is positively related to outward FDI which signifies that high tax rate would prompt local firms to engage in investment abroad as a sign of escape response. This reflects that international expansion appears to be exit strategy from home country instead of entry strategy into foreign markets.  The findings have some important implications on internationalization strategy of firms. 

scholarly journals OUTWARD FDI, MERCHANDISE AND SERVICES TRADE: EVIDENCE FROM SINGAPORE

2013 ◽  
Vol 14 (2) ◽  
pp. 276-291 ◽  
Author(s):  
Koi Nyen Wong ◽  
Soo Khoon Goh
Keyword(s):  
Direct Investment ◽  
Home Country ◽  
Policy Formulation ◽  
External Trade ◽  
Outward Fdi ◽  
Services Trade ◽  
Services Sector ◽  
Consuming Country ◽  
Backward Integration

This paper aims to explore the causality pattern between outward foreign direct investment (OFDI) and major external trade components (i.e. exports and imports of merchandise as well as services) using Singapore as a case study, since it is one of the largest outward investors in the Asian region and it is overtly trade-dependent. The findings reveal that there is evidence of an OFDI-led trade hypothesis, particularly with regard to merchandise exports and imports, which is an indication OFDI opens important channels for intra-firm trade activities, home country sourcing and backward integration. However, there is no evidence of causality relationships between Singapore's OFDI and services trade because the purpose of such services is mainly to provide a market presence in the consuming country. As such, Singaporean multinationals are likely to outsource their services either from the host country services sector or from their own services-supporting subsidiaries that have been relocated abroad. The present study provides implications for policy formulation to strengthen OFDI-services trade linkages.

scholarly journals The Hollowing Out Phenomenon In Japan

2011 ◽  
Vol 1 (6) ◽  
Author(s):  
Roblyn Simeon ◽  
Yumi Ikeda
Keyword(s):  
Time Series Data ◽  
Home Country ◽  
Manufacturing Sector ◽  
Series Data ◽  
Font Size ◽  
Growth Path ◽  
Outward Fdi ◽  
Wage Rates ◽  
Number Of Firms ◽  
Persistent Unemployment

<p class="MsoNormal" style="text-justify: inter-ideograph; text-align: justify; margin: 0in 0.5in 0pt;"><span style="font-size: 10pt;"><span style="font-family: Times New Roman;">This paper examined the &lsquo;hollowing out&rsquo; (de-industrialization) phenomenon in Japan. We collected time series data for twenty years to investigate the home country impact of outward FDI and a weakening manufacturing sector. We used descriptive statistics and econometric techniques to show that de-industrialization is indeed taking place. We also showed that domestic factors such as low inflation, high wage rates and an increasing number of firms were associated with a more dynamic manufacturing sector. However, the persistent unemployment and long recession point to the need for policies that will invigorate domestic industrial activity if Japan is to return to a strong growth path.</span></span></p>

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