Title: Mind over money. FDI location choice in India

Authors: Dirk Holtbrügge; Carina B. Friedmann

Addresses: Department of International Management, Erlangen-Nuremberg University, Lange Gasse 20, 90403 Nuremberg, Germany. ' Department of International Management, Erlangen-Nuremberg University, Lange Gasse 20, 90403 Nuremberg, Germany

Abstract: Foreign Direct Investment (FDI) is one of the driving forces behind the development of emerging markets. Since India began to liberalise its economy in 1991, the country has become increasingly attractive as FDI destination. The regional distribution of FDI, however, is largely unbalanced. Our data show that the location choice of FDI in India is particularly determined by the level of corruption, the literacy rate, the density of higher education institutes, and to a lesser extent also by the geographical location, thus revealing significant differences as compared with FDI location choices in China.

Keywords: FDI location; foreign direct investment; location choice; India; emerging markets; China; corruption; literacy rate; higher education institutes; geographical location.

DOI: 10.1504/IJBEM.2012.046236

International Journal of Business and Emerging Markets, 2012 Vol.4 No.2, pp.123 - 142

Received: 23 Mar 2011
Accepted: 10 Jun 2011
Published online: 15 Nov 2014 *

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