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Theories of Internationalization and Foreign Direct Investment: How to Explain FDI from Emerging MNEs?

In: Emerging-market Multinational Enterprises in East Central Europe

Author

Listed:
  • Ágnes Szunomár

    (Centre for Economic and Regional Studies
    Corvinus University of Budapest)

Abstract

Szunomár offers a much-needed summary of the theoretical framework of foreign direct investment (FDI), as well as the concept of internationalization in order to show that traditional theories seem to be insufficient in explaining FDI decisions of emerging multinational enterprises (MNEs). After briefly presenting the traditional theories and the main findings of the Japanese school of FDI, the chapter continues with introducing the new theoretical attempts that try to explain the international expansion strategy of emerging MNEs, including driving forces and location choices. The author also explores the “specialties” the emerging countries possess, such as the essential function of home-country governments in promoting outward investment, the significance of institutions in influencing emerging MNEs’ behaviour and the outstanding role devoted to learning from others’ experiences.

Suggested Citation

  • Ágnes Szunomár, 2020. "Theories of Internationalization and Foreign Direct Investment: How to Explain FDI from Emerging MNEs?," Studies in Economic Transition, in: Ágnes Szunomár (ed.), Emerging-market Multinational Enterprises in East Central Europe, chapter 0, pages 3-19, Palgrave Macmillan.
    • Handle: RePEc:pal:stuchp:978-3-030-55165-0_1
    DOI: 10.1007/978-3-030-55165-0_1
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