Home >> Working Paper
Impacts of Inward FDI on Outward FDI:Evidence from Global Panel Data
Read        DownLoad
TitleImpacts of Inward FDI on Outward FDI:Evidence from Global Panel Data  
AuthorPan Wenqing, Chen Xiao, Chen Taotao and Gu Lingjun  
OrganizationSchool of Economics and Management, Tsinghua University;;; 
Key WordsOutward Foreign Direct Investment; Inward Foreign Direct Investment; Characteristics of Host Country; IDP 
Abstract Based on the theory of IDP, we employed the global panel data of 146 countries from 1980 to 2011 to investigate the impacts of inward FDI (IFDI) on outward FDI (OFDI) and its mechanism. Our results show that: the global data in general shows a significant positive impact of IFDI on OFDI; and this effect is closely related with the characteristics of the host country: IFDI will further promote OFDI if the host country has higher FDI absorptive capability and larger market size. In addition, we find that the impact of host country’s economic development on OFDI is also to a greater extent through its direct impact on IFDI which in turn improve the capability of OFDI, and this mechanism is robust. 
Serial NumberWP611 
  • Institute of Economics, Chinese Academy of Social Sciences
  • Copyright Economic Research Journal
  • The uploaded articles by this website express the authors’ views, not necessarily the views of this website.
  • Perennial Legal Counsel: Lu Kang (Chong Guang Law Office)
  • ISSN 0577-9154 CN 11-1081/F Postal Distribution Code 2-25l (Domestic) M16 (Overseas)
  • ICP 10211437 (Beijng)
  • No.2,Yuetan Bei Xiaojie, Xicheng District, Beijing 100836, P. R. China
  • Phone/Fax: (+8610) 68034153