Increasingly, developing countries embrace foreign direct investment (FDI) and simultaneously pursue economic integration with developed countries. Foreign investment is subject to sovereign risk and it has been suggested that free trade agreements may serve as a commitment mechanism in order to...

Recent empirical studies of the determinants of multinational activity across countries have found overwhelming support for a horizontal rather than a vertical model of foreign direct investment (FDI). They all use U.S. or other developed country data. This paper, in contrast, uses a previously...

The recent increase in foreign capital flows into developing countries has coincided with a new wave of regional trade agreements involving both developed and developing countries. This paper investigates the effect of the North American Free Trade Agreement (NAFTA), a prime example of this new...

We empirically assess the determinants of India's FDI outflows across a large sample of host countries in the 1996-2009 period. Based on gravity model specifications, we employ Poisson pseudo maximum likelihood (PPML) estimators. Major findings include: India's outward FDI is hardly affected by...