Motivations for Outward FDI from Emerging Economies to Advanced Economies: A Literature Review / Ibrahim Nandom Yakubu, Aziza Hashi Abokor and Iliasu Abdallah

Yakubu, Ibrahim Nandom and Abokor, Aziza Hashi and Abdallah, Iliasu (2020) Motivations for Outward FDI from Emerging Economies to Advanced Economies: A Literature Review / Ibrahim Nandom Yakubu, Aziza Hashi Abokor and Iliasu Abdallah. Journal of International Business, Economics and Entrepreneurship, 5 (1). pp. 30-34. ISSN 2550-1429

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Abstract

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.

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Item Type: Article
Creators:
Creators
Email
Yakubu, Ibrahim Nandom
kassiibrahim@,gmail. com
Abokor, Aziza Hashi
UNSPECIFIED
Abdallah, Iliasu
UNSPECIFIED
Subjects: H Social Sciences > HB Economic Theory. Demography > Relation to philosophy, religion, ethics
Divisions: Universiti Teknologi MARA, Shah Alam > Faculty of Business and Management
Journal or Publication Title: Journal of International Business, Economics and Entrepreneurship
UiTM Journal Collections: UiTM Journal > Journal of International Business, Economics and Entrepreneurship (JIBE)
ISSN: 2550-1429
Volume: 5
Number: 1
Page Range: pp. 30-34
Official URL: https://jibe.uitm.edu.my/index.php/en/june-2020
Item ID: 34886
Uncontrolled Keywords: Outward FDI, Emerging Economies, Advanced Economies
URI: https://ir.uitm.edu.my/id/eprint/34886

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34886

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