The Indian economy has experienced a boom in outward FDI (OFDI) in 2006. The study aims at exploring the factors that drive the boom in OFDI of Indian firms.,The participation of a firm in OFDI is a two-stage process -first, the decision to internationalization and second, how much to invest. We employ a two-stage model to decompose the effects on the decision to internationalization from effects on how much to invest. The two-stage model has the advantage of allowing us to estimate separately the probability of internationalization by a firm – Pr(OFDI > 0) – and the expected volume of investment, E(OFDI|OFDI > 0). The former is estimated by the probit model and the latter is estimated by the ordinary least square model.,The study finds that prior experience and institutional advantage can strongly drive the internationalization of Indian multinationals. The study also examines the relative importance of two aspects of prior knowledge – length of prior knowledge and depth of prior knowledge on OFDI of Indian firms. The study finds that the depth of prior knowledge is a must influential driver of OFDI in comparison to its length.,The present study is a novel attempt to investigate, ‘What drives the boom in OFDI from India?’

中文翻译：

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是什么推动了印度对外直接投资的繁荣？

印度经济在 2006 年经历了对外直接投资 (OFDI) 的繁荣。本研究旨在探讨推动印度企业对外直接投资繁荣的因素。, 企业参与对外直接投资是一个两个阶段的过程 - 首先，国际化的决定，第二，投资多少。我们采用两阶段模型来分解对投资多少的影响对国际化决策的影响。两阶段模型的优点是允许我们分别估计公司国际化的概率——Pr(OFDI > 0)——和预期投资量 E(OFDI|OFDI > 0)。前者用probit模型估计，后者用普通最小二乘模型估计。研究发现，先前的经验和制度优势可以有力地推动印度跨国公司的国际化。该研究还考察了先验知识的两个方面的相对重要性——先验知识的长度和先验知识对印度公司对外直接投资的深度。该研究发现，与其长度相比，先验知识的深度是影响对外直接投资的必然影响因素。本研究是一项新颖的尝试，旨在调查“是什么推动了印度对外直接投资的繁荣？”