The last two decades have seen significant internationalization of firms from developing economies, in terms of their greater participation in international trade, growing outflows of foreign direct investment (FDI), and a recent surge in their cross-border mergers and acquisition activity....

We show that outward investment by Chinese firms with resource and asset seeking motives and Indian firms with market-seeking motives diverged after the financial crisis of 2008, due to different motives and the underlying financing structure of their outward investments. Indian firms faced...