The Determinants Of ODI Under Country-specific Advantages In BRICs

For a long time, outward foreign direct investment (ODI) was dominated by developed countries, while developing countries just acted as recipient. After the 1980s, FDI from developing countries became more and more large. Especially when it comes to 21th century, emerging economies’ ODI grew fast with the development of globalization, among these countries, the most famous is the BRICs countries. At present, literatures of BRICs’ODI are relatively rare, especially those based on the perspective of home country are more scarce. Therefore, the study of foreign direct investment from BRICs’own factors is very necessary.Firstly, this paper systematically summarizes the emerging economies’ODI theories. Secondly, analyze the influence of the country-specific advantages(CSA) on ODI activities, and summarize CSA as scale advantages, industry advantages, preferential policies & service advantages and other special advantages. Then systematically describe the mechanisms and pathways that enterprises convert CSA to their own competitive advantages through internalization. Subsequently, analyze the BRICs’countries economic development and analyzes the overall situation of ODI, but also from the trend and scale、regional distribution、industry characteristics and driving factors these four aspects, give a comparison analysis of these four countries.In the empirical part, based on the basis of theoretical analysis in this paper, select variables from scale advantages、industry advantages、preferential policies & service advantages and other specific advantages.Then analyze empirically the BRICs’common influence factors of ODI and individual country. The study found:on the whole, the economic scale, government policy inclination of the BRICs play significant roles in ODI, technology development level hindered the development of BRICs’ODI, while other special advantages has no significant impact on ODI;by country, the drivers of four countries’ODI is not completely consistent, push factors of ODI also contains financial market conditions in Brazil, Russian’pushing factors contains government financial support, preferential policies & service advantages is very important in India, by contrast, China is mainly scale advantage. Finally, based on the China’s industrial enterprises, check whether scale advantages, technological advantages and institutional advantages exsited in ODI of industrial enterprises.