India’s Outward Foreign Direct Investments in Steel Industry in a Chinese Comparative Perspective
Nagesh Kumar & Alka Chadha
#2008-053
Indian and Chinese enterprises have emerged as important outward
investors in recent times with their involvement in a number of
prominent Greenfield investments and acquisitions. The theory of
international business posits that the ownership of some unique
advantages having a revenue generating potential abroad combined with
the presence of internalization and locational advantages leads to
outward FDI. Conventional MNEs based in the industrialized countries
have grown on the strength of ownership advantages derived from
innovatory activity that is largely concentrated in these countries. It
examines the case of steel industry that has become an important sector
of overseas activity for Chinese and Indian companies with a string of
major acquisitions of foreign MNEs for acquiring footprints and natural
resources in order to identify the sources of ownership advantages and
strategies of outward investments from emerging countries.
JEL codes: O1, L61
Key words: FDI outflows, steel, India
UNU-MERIT Working Papers
ISSN 1871-9872