Micro-Evidence on the Strategies of Chinese and Indian Multinationals: Determinants and Motivations

Bersant Hobdari, Evis Sinani, Marina Papanastassiou, Robert Pearce

    Publikation: Working paperForskning

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    Resumé

    Using a sample of 603 subsidiaries Chinese Multinational Corporations (MNCs) and 174 subsidiaries Indian MNCs, we explore the regional and industrial pattern of their direct investment strategies. Our analysis reveals several important facts. First, most of outward foeign direct investment (FDI) is directed in finance and real estate and services. Second, by far the majority of investment projects are carried out in the home region of Asia-Pacific. Third, outward FDI is highly concentrated geographically and the average investment project is relatively small. Fourth, establishment of subsidiaries is the most preferred way of carrying out FDI. Finally, firm-specific and location-specific characteristics are important drivers of FDI strategies. Last but not least, a large proportion of Chinese and Indian investments is conducted mainly within those countries themselves, revealing a strong multi- domestic character. Outward Foreign Direct Investment, Chinese Multinational Corporations, Indian Multinational Corporations, Market Seeking, Resource Seeking, Efficiency Seeking, Risk Diversification
    OriginalsprogEngelsk
    Udgivelses stedFrederiksberg
    UdgiverDepartment of International Economics and Management, Copenhagen Business School
    Antal sider30
    StatusUdgivet - 2007
    NavnWorking Paper / Department of International Economics and Management, Copenhagen Business School

    Emneord

    • Outward foreign direct investment
    • Chinese multinational corporations
    • Indian multinational corporations
    • Market seeking
    • Resource seeking
    • Efficiency seeking
    • Risk diversification

    Citer dette

    Hobdari, B., Sinani, E., Papanastassiou, M., & Pearce, R. (2007). Micro-Evidence on the Strategies of Chinese and Indian Multinationals: Determinants and Motivations. Frederiksberg: Department of International Economics and Management, Copenhagen Business School. Working Paper / Department of International Economics and Management, Copenhagen Business School
    Hobdari, Bersant ; Sinani, Evis ; Papanastassiou, Marina ; Pearce, Robert. / Micro-Evidence on the Strategies of Chinese and Indian Multinationals : Determinants and Motivations. Frederiksberg : Department of International Economics and Management, Copenhagen Business School, 2007. (Working Paper / Department of International Economics and Management, Copenhagen Business School).
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    abstract = "Using a sample of 603 subsidiaries Chinese Multinational Corporations (MNCs) and 174 subsidiaries Indian MNCs, we explore the regional and industrial pattern of their direct investment strategies. Our analysis reveals several important facts. First, most of outward foeign direct investment (FDI) is directed in finance and real estate and services. Second, by far the majority of investment projects are carried out in the home region of Asia-Pacific. Third, outward FDI is highly concentrated geographically and the average investment project is relatively small. Fourth, establishment of subsidiaries is the most preferred way of carrying out FDI. Finally, firm-specific and location-specific characteristics are important drivers of FDI strategies. Last but not least, a large proportion of Chinese and Indian investments is conducted mainly within those countries themselves, revealing a strong multi- domestic character. Outward Foreign Direct Investment, Chinese Multinational Corporations, Indian Multinational Corporations, Market Seeking, Resource Seeking, Efficiency Seeking, Risk Diversification",
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    Hobdari, B, Sinani, E, Papanastassiou, M & Pearce, R 2007 'Micro-Evidence on the Strategies of Chinese and Indian Multinationals: Determinants and Motivations' Department of International Economics and Management, Copenhagen Business School, Frederiksberg.

    Micro-Evidence on the Strategies of Chinese and Indian Multinationals : Determinants and Motivations. / Hobdari, Bersant; Sinani, Evis; Papanastassiou, Marina; Pearce, Robert.

    Frederiksberg : Department of International Economics and Management, Copenhagen Business School, 2007.

    Publikation: Working paperForskning

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    T2 - Determinants and Motivations

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    AU - Sinani, Evis

    AU - Papanastassiou, Marina

    AU - Pearce, Robert

    PY - 2007

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    N2 - Using a sample of 603 subsidiaries Chinese Multinational Corporations (MNCs) and 174 subsidiaries Indian MNCs, we explore the regional and industrial pattern of their direct investment strategies. Our analysis reveals several important facts. First, most of outward foeign direct investment (FDI) is directed in finance and real estate and services. Second, by far the majority of investment projects are carried out in the home region of Asia-Pacific. Third, outward FDI is highly concentrated geographically and the average investment project is relatively small. Fourth, establishment of subsidiaries is the most preferred way of carrying out FDI. Finally, firm-specific and location-specific characteristics are important drivers of FDI strategies. Last but not least, a large proportion of Chinese and Indian investments is conducted mainly within those countries themselves, revealing a strong multi- domestic character. Outward Foreign Direct Investment, Chinese Multinational Corporations, Indian Multinational Corporations, Market Seeking, Resource Seeking, Efficiency Seeking, Risk Diversification

    AB - Using a sample of 603 subsidiaries Chinese Multinational Corporations (MNCs) and 174 subsidiaries Indian MNCs, we explore the regional and industrial pattern of their direct investment strategies. Our analysis reveals several important facts. First, most of outward foeign direct investment (FDI) is directed in finance and real estate and services. Second, by far the majority of investment projects are carried out in the home region of Asia-Pacific. Third, outward FDI is highly concentrated geographically and the average investment project is relatively small. Fourth, establishment of subsidiaries is the most preferred way of carrying out FDI. Finally, firm-specific and location-specific characteristics are important drivers of FDI strategies. Last but not least, a large proportion of Chinese and Indian investments is conducted mainly within those countries themselves, revealing a strong multi- domestic character. Outward Foreign Direct Investment, Chinese Multinational Corporations, Indian Multinational Corporations, Market Seeking, Resource Seeking, Efficiency Seeking, Risk Diversification

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    KW - Chinese multinational corporations

    KW - Indian multinational corporations

    KW - Market seeking

    KW - Resource seeking

    KW - Efficiency seeking

    KW - Risk diversification

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    KW - Indian multinational corporations

    KW - Market seeking

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    KW - Risk diversification

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    Hobdari B, Sinani E, Papanastassiou M, Pearce R. Micro-Evidence on the Strategies of Chinese and Indian Multinationals: Determinants and Motivations. Frederiksberg: Department of International Economics and Management, Copenhagen Business School. 2007.