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Country location choices of service multinationals: An empirical study of the international hotel sector

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  • Kundu, Sumit K.
  • Contractor, Farok J.
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    Abstract

    This article examines international country location choices for equity investment undertaken by global hotel chains. Why do certain host countries attract more hotel investment than others? A second underlying issue that we tackle in this article is whether the traditional foreign direct investment determinants used in past studies on manufacturing also apply to services--or whether service sector-specific determinants are better explanatory variables for understanding the distribution of service foreign direct investment across countries.

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    File URL: http://www.sciencedirect.com/science/article/pii/S1075425399000174
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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of International Management.

    Volume (Year): 5 (1999)
    Issue (Month): 4 ()
    Pages: 299-317

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    Handle: RePEc:eee:intman:v:5:y:1999:i:4:p:299-317

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    Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/601266/description#description

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    Related research

    Keywords: Service foreign direct investment Location International hotels;

    References

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    1. Peter Wilson, 1994. "Tourism Earnings Instability in Singapore, 1972-88," Journal of Economic Studies, Emerald Group Publishing, vol. 21(1), pages 41-51, January.
    2. Goldberg, Lawrence G. & Johnson, Denise, 1990. "The determinants of US banking activity abroad," Journal of International Money and Finance, Elsevier, vol. 9(2), pages 123-137, June.
    3. Grubaugh, Stephen G, 1987. "Determinants of Direct Foreign Investment," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 149-52, February.
    4. Fagerberg, Jan, 1988. "International Competitiveness: Errata," Economic Journal, Royal Economic Society, vol. 98(393), pages 1203, December.
    5. Ralph M Gaedeke, 1973. "Selected U.S. Multinational Service Firms in Perspective," Journal of International Business Studies, Palgrave Macmillan, vol. 4(1), pages 61-66, March.
    6. J H Dunning & G Norman, 1987. "The location choice of offices of international companies," Environment and Planning A, Pion Ltd, London, vol. 19(5), pages 613-631, May.
    7. Jamuna Agarwal, 1980. "Determinants of foreign direct investment: A survey," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 116(4), pages 739-773, December.
    8. Goldberg, Lawrence G. & Saunders, Anthony, 1981. "The determinants of foreign banking activity in the United States," Journal of Banking & Finance, Elsevier, vol. 5(1), pages 17-32, March.
    9. Fagerberg, Jan, 1988. "International Competitiveness," Economic Journal, Royal Economic Society, vol. 98(391), pages 355-74, June.
    10. Esfahani, Hadi Salehi, 1991. "Exports, imports, and economic growth in semi-industrialized countries," Journal of Development Economics, Elsevier, vol. 35(1), pages 93-116, January.
    11. Culem, Claudy G., 1988. "The locational determinants of direct investments among industrialized countries," European Economic Review, Elsevier, vol. 32(4), pages 885-904, April.
    12. Horst, Thomas, 1972. "Firm and Industry Determinants of the Decision to Invest Abroad: An Empirical Study," The Review of Economics and Statistics, MIT Press, vol. 54(3), pages 258-66, August.
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    Cited by:
    1. Chang, Cheng-Chang & Chen, Ju-Long, 2012. "A foreign expansion model with multi-site locations in service industries," International Journal of Production Economics, Elsevier, vol. 136(1), pages 102-109.
    2. Saroja Selvanathan & Selvanathan & Brinda Viswanathan, 2009. "Causality between Foreign Direct Investment and Tourism: Empirical Evidence from India," Working Papers 2009-046, Madras School of Economics,Chennai,India.
    3. Wetzels,Martin & Ruyter,Ko,de & Patterson,Paul G. & Pauwels,Pieter, 2003. "The Propensity To Continue Service Internationalization - A Model Of Planned Behavior," Research Memorandum 052, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).

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