Analysis On The Home Country Pushing Factors Of Outward FDI From The Emerging Market

OFDI (outward foreign direct investment) from the emerging market has experienced a significant rise in resent years, more and more MNCs from the emerging market are beginning to play an important role worldwide. OFDI from developing and transition economies accounted for just over6%of the OFDI flow of the world in1980, but its share grew to29%in2010. The rapid expansion of OFDI from the emerging market is unconventional. And it has attracted many scholars’ attention. The OLI framework highlight that firms start their overseas activity in terms of ownership specific advantages, internalization advantages and location specific advantages. But obviously firms from the emerging market do not prossess the ownership specific advantage. In this paper, based on factor endowments theory, OLI framework, IDP theory,the combined theory of investment influencing factors and diamond theory, we argue that it’s the home country-specific upgraded the L advantage of the home country which in turn helped create O advantages of their firms. In order to stress the push factors from the home country, we suggest that adjust the OLI framework to H-OLI framework.In the empirical study of this paper, We choose the home country push factors based on the Y model which is brought up by Peng in2006.The preliminary findings reveal that there is a positive relation between OFDI and local demands, inward FDI, export, labor cost and the support from the government policies. Nevertheless, there is no correlation between OFDI and the technology level and the stock market capitalization to GDP. It tells us that the low technical innovation ability and the imperfect stock market of the emerging market did not help to improve OFDI, but it did improve outward FDI from the emerging market to escape the institutional misalignment. Some suggestions are made in the last.