Keywords: FDI source countries, foreign direct investment, technology transfer, firm behaviour, country of origin, culture, USA, United States, Japan, India
Does country of foreign direct investment matter? A study of US and Japanese firms in India
Literature in various country contexts have pointed to behavioural differences between FDI from various source countries. These differences emanate from the culture of the source country and are expected to have a bearing on the benefit the host economies can reap from FDI. This paper examines the behavioural differences between US and Japanese FDI in the Indian context and its implications for their technology transfer behaviour. The findings of this paper is a reminder that the quality of FDI must not been forgotten in the race for attracting more FDI.