Outward foreign direct investment by emerging economies in developed countries : the case of India

Abstract

The ongoing globalization and liberalization by emerging economies have substantially enhanced foreign direct investment (FDI) activities. Multinational Enterprises (MNEs) from the emerging market economies, such as India, are actively undertaking outward FDI (OFDI) to expand into the global market, especially in the developed world. Several studies have been carried out in order to understand various aspects of FDI and a number of theories have been proposed. However, there exists a knowledge gap in the literature to fully explain the phenomenon of OFDI from the emerging market economies. Using a country-, industry- and firm- perspective, this thesis analyzed the characteristics, determinants, and motives of Indian OFDI, in developed countries with a particular focus on Ireland. The key questions were - what macroeconomic characteristics enable Indian firms to invest overseas? What are the drivers, motivations, mode of entry, challenges and success factors of Indian firms in Ireland? Do all Indian firms invest in Ireland for the same reasons, and if not, how and why are they different?