Motivations for Outward FDI from Emerging Economies to Advanced Economies: A Literature Review
Outward Foreign Direct Investment (FDI) from emerging economies in recent years has experienced rapid growth, especially from the BRIC (Brazil, Russia, India, and China) economies. This has gained much attention from international business researchers. The present study assessed the motivations for...
Saved in:
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
UiTM Press
2020-06-01
|
| Series: | Journal of International Business, Economics and Entrepreneurship |
| Subjects: | |
| Online Access: | https://journal.uitm.edu.my/ojs/index.php/JIBE/article/view/1461 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1846160446059446272 |
|---|---|
| author | Ibrahim Nandom Yakubu Aziza Hashi Abokor Iliasu Abdallah |
| author_facet | Ibrahim Nandom Yakubu Aziza Hashi Abokor Iliasu Abdallah |
| author_sort | Ibrahim Nandom Yakubu |
| collection | DOAJ |
| description |
Outward Foreign Direct Investment (FDI) from emerging economies in recent years has experienced rapid growth, especially from the BRIC (Brazil, Russia, India, and China) economies. This has gained much attention from international business researchers. The present study assessed the motivations for the outward FDI from emerging economies to advanced economies based on literature review. The paper revealed that market seeking, natural resource seeking, strategic asset seeking, efficiency seeking, and home government support motivate firms from emerging economies to invest in advanced economies. However, efficiency seeking least motivates China's outward FDI due to its low labour cost. The study also made an evaluation of the existing theories of FDI to determine whether they adequately explain such investments. Based on the evaluation, the OLI Paradigm and the Resource- Based View do not adequately provide a plausible explanation for such investments. However, emerging economies outward FDI to advanced economies seemed to be adequately explained by the Institutional Theory.
|
| format | Article |
| id | doaj-art-067a8bb4f75d4c7db83025d5add806b7 |
| institution | Kabale University |
| issn | 2550-1429 |
| language | English |
| publishDate | 2020-06-01 |
| publisher | UiTM Press |
| record_format | Article |
| series | Journal of International Business, Economics and Entrepreneurship |
| spelling | doaj-art-067a8bb4f75d4c7db83025d5add806b72024-11-22T07:20:21ZengUiTM PressJournal of International Business, Economics and Entrepreneurship2550-14292020-06-0151 Motivations for Outward FDI from Emerging Economies to Advanced Economies: A Literature ReviewIbrahim Nandom Yakubu0Aziza Hashi Abokor1Iliasu Abdallah2Department of Banking and Finance Ankara Yildirim Beyazit University, TurkeyDepartment of Banking and Finance Ankara Yildirim Beyazit University, TurkeyDepartment of Islamic Economics and Finance Marmara University, Turkey Outward Foreign Direct Investment (FDI) from emerging economies in recent years has experienced rapid growth, especially from the BRIC (Brazil, Russia, India, and China) economies. This has gained much attention from international business researchers. The present study assessed the motivations for the outward FDI from emerging economies to advanced economies based on literature review. The paper revealed that market seeking, natural resource seeking, strategic asset seeking, efficiency seeking, and home government support motivate firms from emerging economies to invest in advanced economies. However, efficiency seeking least motivates China's outward FDI due to its low labour cost. The study also made an evaluation of the existing theories of FDI to determine whether they adequately explain such investments. Based on the evaluation, the OLI Paradigm and the Resource- Based View do not adequately provide a plausible explanation for such investments. However, emerging economies outward FDI to advanced economies seemed to be adequately explained by the Institutional Theory. https://journal.uitm.edu.my/ojs/index.php/JIBE/article/view/1461Outward FDI, Emerging Economies, Advanced Economies |
| spellingShingle | Ibrahim Nandom Yakubu Aziza Hashi Abokor Iliasu Abdallah Motivations for Outward FDI from Emerging Economies to Advanced Economies: A Literature Review Journal of International Business, Economics and Entrepreneurship Outward FDI, Emerging Economies, Advanced Economies |
| title | Motivations for Outward FDI from Emerging Economies to Advanced Economies: A Literature Review |
| title_full | Motivations for Outward FDI from Emerging Economies to Advanced Economies: A Literature Review |
| title_fullStr | Motivations for Outward FDI from Emerging Economies to Advanced Economies: A Literature Review |
| title_full_unstemmed | Motivations for Outward FDI from Emerging Economies to Advanced Economies: A Literature Review |
| title_short | Motivations for Outward FDI from Emerging Economies to Advanced Economies: A Literature Review |
| title_sort | motivations for outward fdi from emerging economies to advanced economies a literature review |
| topic | Outward FDI, Emerging Economies, Advanced Economies |
| url | https://journal.uitm.edu.my/ojs/index.php/JIBE/article/view/1461 |
| work_keys_str_mv | AT ibrahimnandomyakubu motivationsforoutwardfdifromemergingeconomiestoadvancedeconomiesaliteraturereview AT azizahashiabokor motivationsforoutwardfdifromemergingeconomiestoadvancedeconomiesaliteraturereview AT iliasuabdallah motivationsforoutwardfdifromemergingeconomiestoadvancedeconomiesaliteraturereview |