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Unconventional foreign direct investment and the imbalance theory

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  • Moon, Hwy-Chang
  • Roehl, Thomas W.
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    Abstract

    We have observed an increasing number of foreign direct investments (FDI) from less developed countries, and by firms that are not the strongest competitors in their markets. This increase in the variety of investments is a challenge for existing theories of FDI based on ownership-specific advantages that give a firm an advantage in foreign markets. By introducing the idea of imbalance, as opposed to advantage, as the source of FDI, we allow for a theoretical basis for analyzing FDI. This concept effectively deals with the variety of FDI while remaining consistent with the traditional explanations for more conventional FDI cases.

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    Bibliographic Info

    Article provided by Elsevier in its journal International Business Review.

    Volume (Year): 10 (2001)
    Issue (Month): 2 (April)
    Pages: 197-215

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    Handle: RePEc:eee:iburev:v:10:y:2001:i:2:p:197-215

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    Related research

    Keywords: Foreign direct investment Imbalance theory;

    References

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    Citations

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    Cited by:
    1. Francesca Spigarelli, 2011. "Outward Foreign Direct Investments of the Russian Federation," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 1, March.
    2. Barnard, Helena, 2010. "Overcoming the liability of foreignness without strong firm capabilities -- the value of market-based resources," Journal of International Management, Elsevier, vol. 16(2), pages 165-176, June.
    3. Lin Cui & Fuming Jiang, 2010. "Behind ownership decision of Chinese outward FDI: Resources and institutions," Asia Pacific Journal of Management, Springer, vol. 27(4), pages 751-774, December.
    4. Maximiliano Sosa Andrés & Peter Nunnenkamp & Matthias Busse, 2012. "What Drives FDI from Non-traditional Sources? A Comparative Analysis of the Determinants of Bilateral FDI Flows," Kiel Working Papers 1755, Kiel Institute for the World Economy.
    5. Balcet Giovanni & Ruet Joël, 2011. "From Joint Ventures to National Champions or Global Players? Alliances and Technological Catching-up in Chinese and Indian Automotive Industries," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201109, University of Turin.
    6. Marta Gotz, 2013. "Exploring Foreign Direct Investment from Poland Using Grounded Theory Method," Oeconomia Copernicana, Polskie Towarzystwo Ekonomiczne Oddzial w Toruniu, Wydzial Nauk Ekonomicznych i Zarzadzania UMK, vol. 2, pages 73-96.
    7. Kuznetsov, Alexey, 2010. "Urgent tasks for research on Russian TNCs," MPRA Paper 42702, University Library of Munich, Germany.
    8. Dirk Christian Dohse & Robert Hassink & Claudia Klaerding, 2012. "Emerging multinationals, international knowledge flows and economic geography: a research agenda," Kiel Working Papers 1776, Kiel Institute for the World Economy.
    9. van den Berghe, D., 2001. "The Geography of International Strategy: a multi-level framework," ERIM Report Series Research in Management ERS-2001-51-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
    10. Barnard, Helena, 2008. "Uneven domestic knowledge bases and the success of foreign firms in the USA," Research Policy, Elsevier, vol. 37(10), pages 1674-1683, December.
    11. Jaya Prakash Pradhan, 2010. "Strategic Asset-Seeking Activities of Emerging Multinationals: Perspectives of Foreign Acquisitions by Indian Pharmaceutical MNEs," Organizations and Markets in Emerging Economies, Faculty of Economics, Vilnius University, vol. 1(2).
    12. Balcet Giovanni & Bruschieri Silvia, 2009. "Indian multinationals in the automotive and the pharmaceutical sectors: competitive advantages and strategies," Department of Economics and Statistics Cognetti de Martiis. Working Papers 200906, University of Turin.

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