Bank Foreign Direct Investment in Indian Economy: A Theoretical Review
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Author: Ajay Massand
Author Address: Area Chair-General Management, Assistant Professor in Economics, CMS Business School, JAIN (Deemed-to-be University), Bengaluru-560069 (Karnataka)
Keywords: Bank FDI, FDI theories, foreign banks, foreign direct investment, internalization
JEL Codes: F21, F23, G21.
Abstract
The study's primary objective is to understand the evolution of foreign direct investment theories (FDI) and identify the application theories in bank FDI from the literature. Based on the pattern of investment, FDI can be classified as greenfield and brownfield investment. Both types of investments yield profits, so the study attempted to answer why greenfield FDI, i.e., foreign banks invest by opening their branches and offices in the host economy. The study reviewed literature focused on bank FDI determinants in host economies and discussed it in the Indian context. The study found that primary reasons for greenfield FDI are India's locational advantages, such as profit opportunity and already present home clients in India.
Description
Indian Journal of Economics and Development
Volume 17 No. 1, 2021, 182-188
DOI: https://doi.org/10.35716/IJED/20195
Indexed in Clarivate Analytics (ESCI) of WoS
Indexed in Clarivate Analytics (ESCI) of WoS
Scopus: Title Accepted
NAAS Score: 5.15