FDI from Developing Countries to Developing Countries: Contributing at More Risky Location?

The positive outcomes of FDI inflows from developed or developing countries are well known from the literature. However, the recent declining trend from developed countries and the emergence of FDI from developing countries at a huge amount have triggered our interest on the issue whether (or not) FDI from developed countries are more risk averse than FDI from developing countries. This could imply that FDI from developing countries could be contributing more towards economic development in host developing countries. Focusing on Malaysian manufacturing sector, this study attempts to identify the risk averseness of FDI from developed countries against FDI from developing countries.