Abstract

The importance of Foreign Direct Investment (FDI) in current era is clearly seen in the investment made by carious companies abroad and also receiving international investment by local companies. The countries are involved in outwards and inwards FDI to receive maximum profit and long-term benefits from various FDI projects. In this regard, outwards foreign direct investment (OFDI) is also getting increased importance along with inwards FDI. The current study thereby intends to investigate the OFDI trends of companies from European Union and Asian countries whereby focusing on pharmaceutical sector particularly. Moreover, it is noteworthy that there is a rapid growth in pharmaceutical industries around the world due to advanced technology and infinite amassed need for treatment and cure options. Therefore, current study targets three European Union countries and three Asian countries, including both developed and developing nations, and investigates the OFDI patterns of pharmaceutical sector of countries. The results reveal that EU states are effective in both attracting FDI and making investments abroad and in domestic markkets; however, Netherland among three states has the highest performance in FDI inflows and outflows patterns. The analysis of Asian countries indicated that they are less effective in terms of their FDI flows compared to EU states. This is because of their developing stage and less economic growth stages. However, among three countries, Turkey presents the highest performance in attracting FDI from international markets, while Israel has highest performance in making investments abroad among three countries.

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