Affiliation:
1. National Institute of Technology Tiruchirappalli, Tamil Nadu, India
Abstract
The study investigates the effect of external commercial borrowings (ECB) on outward foreign direct investment (OFDI) using data on Indian manufacturing firms from 2008 to 2020. Our analysis, using the Heckman two-step procedure (1979), suggests a positive effect of ECB on firms’ OFDI. The results indicate that firms using more leverage and ECB are firms with higher OFDI intensity.
Publisher
Asia-Pacific Applied Economics Association
Reference22 articles.
1. Financial constraints, asset tangibility, and corporate investment;Heitor Almeida;Review of Financial Studies,2007
2. Internationalising in small, incremental or larger steps?;Harry G Barkema;Journal of international business studies,2007
3. Technology Sourcing and Outward FDI: Comparison of Chemicals and IT Industries in India;Savita Bhat;Transnational Corporations Review,2011
4. Does Easing Controls on External Commercial Borrowings boost Exporting Intensity of Indian Firms?;U. Bose,2017
5. Financial constraints and foreign direct investment: firm-level evidence;Claudia M. Buch;Review of World Economics,2014