Location Determinants of Indian OFDI: Insights from Panel Data Analysis

Abstract

The present study attempted to analyze the determinants affecting Indian Outward Foreign Direct Investment (OFDI) during the second generation of globalization. The results showed that economic factors like trade openness and natural resource trade of the host country were highly significant variables for Indian OFDI. The case of non-economic factors such as political stability and non-violence remained significant variables for Indian investment, but the regulatory quality was not noteworthy. The study suggested that to expand the growth of OFDI, and the government could search for other suitable markets that were less capital-intensive or used underdeveloped technology. So, India has an alternative to improve its trade relations with African and Asian markets. � 2023 The Society of Economics and Development, except certain content provided by third parties.