In the literature, there are two
economic views put forward pertaining to the possible impacts of outward foreign direct
investment (OFDI) on the home country economic growth. One view argues that if OFDI
is a substitute for domestic investment (e.g., domestic production that has been relocated
abroad due to diminished domestic investment opportunities), an increase in foreign
direct investment by home country multinational firms may cause a decrease in output at
home economy (Stevens and Lipsey, 1992).