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Multinational companies from transition economies and their outward foreign direct investment

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  • Andreff, Wladimir
  • Andreff, Madeleine

Abstract

Multinational companies (MNCs) based in 26 post-communist transition economies (PTEs) emerged during the 1990s. Their outward foreign direct investment (OFDI) boomed dramatically from 2000 to 2007 in these countries, and then muddled through the financial crisis and great recession at difference paces on different paths. This difference is revealed in a sample of 15 PTEs for which data are available from 2000 to 2015. Most of these economies appear to be on the brink of moving from the second to the third stage of Dunning's investment development path. The geographical distribution of their OFDI favors host countries located in other PTEs, developed market economies, and tax havens while their industrial structure is more concentrated on services rather than on manufacturing and the primary sector. PTE-based MNCs primarily adopt a strategy of market-seeking OFDI.

Suggested Citation

  • Andreff, Wladimir & Andreff, Madeleine, 2017. "Multinational companies from transition economies and their outward foreign direct investment," Russian Journal of Economics, Elsevier, vol. 3(4), pages 445-474.
    • Handle: RePEc:eee:rujoec:v:3:y:2017:i:4:p:445-474
    DOI: 10.1016/j.ruje.2017.12.008
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    Cited by:

    1. Magdolna Sass & Jana Vlčková, 2019. "Just Look behind the Data! Czech and Hungarian Outward Foreign Direct Investment and Multinationals," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 69(supplemen), pages 73-105, December.
    2. K. Kalotay & A. Sulstarova, 2021. "FDI in the Post-Soviet Space Three Decades after the Disintegration of the Soviet Union," Outlines of global transformations: politics, economics, law, Center for Crisis Society Studies, vol. 14(5).
    3. Daxue KAN & Weichiao HUANG, 2019. "Empirical Study of the Impact of Outward Foreign Direct Investment on Water Footprint Benefit in China," Sustainability, MDPI, vol. 11(16), pages 1-16, August.
    4. Malgorzata Jaworek & Wlodzimierz Karaszewski, 2021. "The Largest Non-Financial Multinational Enterprises in the World and Those in Developing and Transition Economies," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 683-696.
    5. Xing Zhou & Quan Guo & Ming Zhang, 2021. "Impacts of OFDI on Host Country Energy Consumption and Home Country Energy Efficiency Based on a Belt and Road Perspective," Energies, MDPI, vol. 14(21), pages 1-25, November.

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    More about this item

    Keywords

    F21; F23; M16; O57; P29; outward foreign direct investment; multinational companies; post-communist transition economies; investment development path; linkage-leverage-learning; push factors;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • P29 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Other

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