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Survival of Japanese subsidiaries in the Middle East and North Africa

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  • Demirbag, Mehmet
  • Apaydin, Marina
  • Tatoglu, Ekrem

Abstract

This paper considers factors affecting survival of foreign subsidiaries in the context of Japanese foreign equity ventures in the Middle East and North Africa (MENA). Three new institutional variables, economic distance, economic freedom distance and subsidiary density, are examined as determinants of survival while controlling for other determinants previously established in the literature. The findings support our hypotheses. We found that economic distance and economic freedom distance exhibit significant positive and negative relationships respectively with the survival of Japanese FDI in the MENA region, and moderate positive relationship between subsidiary density and subsidiary survival.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of World Business.

Volume (Year): 46 (2011)
Issue (Month): 4 (October)
Pages: 411-425

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Handle: RePEc:eee:worbus:v:46:y:2011:i:4:p:411-425

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Keywords: Economic distance Economic freedom Japanese FDI Subsidiary survival Middle East and North Africa;

References

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Cited by:
  1. George Peng & Paul Beamish, 2014. "The effect of host country long term orientation on subsidiary ownership and survival," Asia Pacific Journal of Management, Springer, Springer, vol. 31(2), pages 423-453, June.

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