The current study examines the relationships between several home country-specific udmacroeconomic factors and the level of the outward FDI of China and India using multiple udtime-series data from 1982 to 2006 and from 1980 to 2006, respectively. With the use of a udvector autoregressive model assessing the causal relationships of the endogenous variables, udthe empirical research proves that Chinese national characteristics associated with income per udcapita, openness of the economy to international trade, interest rate, human capital, udtechnological capability, exchange rate and exchange rate volatility do not Granger cause the udlevel of outward FDI of China. By contrast, the national technological capability of India udGranger causes their level of outward FDI. The level of outward FDI of China does not udGranger cause any of the home country-specific macroeconomic factors considered, while the udlevel of outward FDI of India Granger causes their national interest rate.
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