Outward FDI and Crossborder M&As by Indian Firms: A Host Country-Level Analysis

This paper tries to understand the trends and the pattern of Outward Foreign Direct Investment (OFDI) by Indian firms and the factors that determine OFDI from India through Cross-Border Mergers and Acquisitions (CBM&As). As economic activities of those firms in the respective host countries are not accessible, the present study is restricted to analyse the push and pull factors, based on the macroeconomic indicators of the leading nineteen countries that hosted such investments between 2004 and 2015. The study employs Negative binomial and Ordinary Least Square (OLS) panel data regression. It is based on a theoretical framework, i) by drawing insights mainly from the Ownership Location Internationalisation (OLI) theory on determinants of FDI, namely, market-seeking, resource seeking and strategic asset seeking, and ii)by controlling other variables such as India’s Real Effective Exchange Rate and Institutional factors.