Remco H. Oostendorp: Outward FDI is no longer the preserve of rich countries investing in poor countries, as multinational companies with parent headquarters based in developing countries increasingly take their place in the global investment arena. The surge in outward FDI from India since the 2000s fits into this broader global pattern. Analysts and policymakers often view this emergent pattern as a sign of “coming to age” of successful emerging economies.
Athukorala and Veeramani enter into this debate questioning whether the recent surge in outward FDI from India is a mixed blessing. They first provide a detailed historical description of the outward FDI–relevant policy setting in India as well as a highly informative picture of the trends, sectoral and geographical composition, and main investors using different sources of information. They identify a first wave of outward FDI in the 1960–80s and a second wave starting in the mid 1990s following...