Abstract
Purpose
Outward foreign direct investment (OFDI) and its relationship with exports of home country is an important aspect of internationalization having implications for both policymakers and multinational enterprises (MNEs). This paper aims to examine this relationship by using panel data for ten major emerging countries from Asia over the period 1991-2012.
Design/methodology/approach
The authors use panel vector auto regression, panel cointegration and causality tests in this study.
Findings
The authors find evidence of long-run causality from exports to OFDI. Further, exports and OFDI are found to be substitutes. There is no long-run causality from OFDI to exports, implying that MNEs are not “connecting” with home country firms through backward and forward linkages in the production process.
Originality/value
To the best of the authors’ knowledge, this is the first paper to deal with the relationship of OFDI with exports of the home country, for a group of developing/emerging countries.
Subject
General Business, Management and Accounting,Business and International Management
Reference56 articles.
1. FDI and trade – two-way linkages?;The Quarterly Review of Economics and Finance,2006
2. Ajaga, E. and Nunnenkamp, P. (2008), “Inward FDI, value added and employment in US states: a panel cointegration approach”, Kiel Working Paper No. 1420, May.
3. The determinants of Turkish outward foreign direct investment;Modern Economy,2011
4. Asian firms and the restructuring of global value chains;International Business Review,2014
5. Liberalization, FDI, and growth in developing countries: a panel cointegration approach;Economic Inquiry,2003
Cited by
46 articles.
订阅此论文施引文献
订阅此论文施引文献，注册后可以免费订阅5篇论文的施引文献，订阅后可以查看论文全部施引文献