Home Country Institutions As Predictors of FDI in India‪.‬

INTRODUCTION The international business literature has traditionally drawn upon internalization theory (Buckley and Casson 1976) and transaction costs economics (TCE) (Williamson 1985; Yiu and Makino 2002) as primary explanations of foreign direct investment (FDI) levels. Several authors (Oliver 1997; Hoskisson et al 2000; Peng 2001) have argued that international business research should involve multiple theoretical perspectives and emphasized the value of considering the influence of institutions on FDI. Direct investment in a foreign market is a primary example of a business activity influenced by institutional factors of home countries as well as those of host countries.