Working Papers,
Copenhagen Business School, Department of International Economics and Management

Abstract: Until recently major part of FDI flows had been among developed economies with similar relative factor endowments, income levels and market institutions such as property rights regimes. Consequently, major theoretical streams of FDI in economics could simplify FDI as a substitute for intra-industry trade by incorporating transportation costs and economies of scale (multi-plants). In the recent years, developing economies have increased their share of FDI inflows significantly (40%). Explanation of magnitude and pattern of FDI into developing economies requires a complex ray of factors. This is because these economies differ significantly from developed economies and also among each other in economic development levels and endowment of market institutions. This paper attempts to develop a conceptual framework to explain pattern of FDI in developing economies by identifying the determinants on the supply and demand side and market institutional conditions. Differences in the endowment of the factors in a set determine the pattern of FDI in these economies. This paper illustrates this by taking the case study of China and India.

Keywords: Emerging Economies; Pattern of FDI; China and India

37 pages, February 1, 2001

Full text files

6553  

Download statistics

• Copenhagen Business School, Department of International Economics and Management
• Ordering Working Papers
• Home page for this series

Questions (including download problems) about the papers in this series should be directed to Lars Nondal ()
Report other problems with accessing this service to Sune Karlsson ().

RePEc:hhb:cbsint:2001-001This page generated on 2024-09-13 22:18:14.