Foreign Direct Investment into Developing Asian Countries: The Role of Market Seeking, Resource Seeking and Efficiency Seeking Factors
Year: 2011
Type: article
Abstract: According to eclectic theory of Dunning, FDI could be of four types: market seeking, resource seeking,efficiency seeking and strategic asset seeking. Market seeking factors of FDI such as market size, market growth,structure of domestic market, etc. aim at penetrating the local markets of host countries. While resource seekinginvestments are made in order to have access to cheap raw material, pool of labor, infrastructure, etc. Newsources of competitiveness, economies of scope and specialization and low cost of production are some of theefficiency seeking factors of FDI. An attempt is made to study the impact of market seeking, efficiency seekingand resource seeking factors of host countries on FDI inflows of host countries by taking sample 10 Asiancountries in the time period 1991 to 2008. Panel regression results show that all categories of FDI motivatingfactors have a significant impact on FDI inflows.
Authors: Kavita Wadhwa, Sudhakara Reddy S
Institutions: ICFAI Business School, ICFAI Foundation for Higher Education
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W2050844797