{'fraction_non_alphanumeric': 0.015050167224080268, 'fraction_numerical': 0.01950947603121516, 'mean_word_length': 5.0641891891891895, 'pattern_counts': {'":': 0, '<': 0, '<?xml version=': 0, '>': 0, 'https://': 0, 'lorem ipsum': 0, 'www.': 0, 'xml': 0}, 'pii_count': 0, 'substrings_counts': 0, 'word_list_counts': {'cursed_substrings.json': 0, 'profanity_word_list.json': 0, 'sexual_word_list.json': 0, 'zh_pornsignals.json': 0}}
INTERNATIONALIZATION OF FIRMS FROM EMERGING ECONOMIES: THEORY, EVIDENCE AND POLICY

India and China have emerged as an important source of outward foreign direct investment (OFDI) in the global economy. The increasing presence of their enterprises in the advanced countries has posed a challenge both to theory of internationalization of firms and public policy alike to explain why this has happened. In this paper, an attempt is made to examine, in comparative framework, the trends, patterns and determinants of OFDI from India and China. The critical review of theory and empirical evidence related to internationalization of firms clearly brings out that unlike firms of advanced countries, there are multiple sources of the strength of Chinese and Indian firms that drives overseas investment. The study covers the periods from 1990 to 2010. To ascertain the probability that allows a firm to engage or not to engage in international operations have been estimated for the period 2000-2009, based on a unique panel data set of 140 Indian firms, with the help of logit models. The stock as well as flow of OFDI from India increased at a fast rate compared to China. The outward to inward ratio for India has increased dramatically during 2000-2007 but this ratio was much higher for China between 2008 and 2010. China’s OFDI was more concentrated in financial services and Asian countries, whereas in case of India, it was predominantly in manufacturing sector and advanced countries. The public policy regarding OFDI has undergone substantial transformation from merely permissive to encouraging in both the countries. The pattern of investment abroad and internationalization of firms from both the emerging economies seems to have been largely determined and guided by the state policy.