ABSTRACT
While the majority of foreign direct investment (FDI) stock in the world is still held by multinational companies (MNCs) from the advanced, industrialized countries, in recent years, outward FDI (OFDI) from developing countries has become a ‘major factor in the world economy’ (Schifferes, 2006). As recipients of FDI, some developing countries have benefited from the massive infusion of foreign capital, technology and technological know-how that accompanied these investments. This inflow, coupled with endogenous factors, has enabled some of these recipient countries to develop into emerging economies (EEs). EEs are also known as emerging markets, developing or transitional economies. Over time, many of these EEs have become foreign investors themselves (Luo and Tung, in press).
