Abstract
There is growing evidence that the ability to raise finance has been an important characteristic of Indian and Chinese firms that invested abroad. Athreye and Kapur (2009) focus on the role of liberalization, and conclude that the relaxation of policy restrictions on capital outflows has contributed largely to the surge of foreign investment from India and China. Gupta and Yuan (2009) show that stock market liberalization has promoted overall investment from emerging economies by lowering the cost of external finance. For Indian firms, Bhaduri (2005) finds that deregulation of interest rates, a reduction of directed credit and the development of financial markets has alleviated credit constraints and ultimately led to an increase in firm investment. Guariglia et al. (2011) show that the Chinese growth miracle was driven by privatized firms, which hoard large cash stocks.
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© 2014 Abubakr Saeed and Suma Athreye
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Saeed, A., Athreye, S. (2014). Internal Capital Markets and outward Foreign Investment from India and China. In: Temouri, Y., Jones, C. (eds) International Business and Institutions after the Financial Crisis. The Academy of International Business. Palgrave Macmillan, London. https://doi.org/10.1057/9781137367204_7
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