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Commonalities and differences between production-related FDI (PFDI) and technology-related FDI (TFDI) in developed and emerging economies

Author

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  • Alvandi , Keyvan

    (CIRCLE, Lund University)

  • Chaminade , Cristina

    (CIRCLE, Lund University)

  • Lv, Ping

    (University of Chinese Academy of Sciences, China)

Abstract

This paper investigates commonalities and differences in firm level determinants of internationalization of production (production related investments or PFDI) and innovation (technology driven investments or TFDI) by Multinational Enterprises (MNEs). Our database is based on a cross country survey which includes firms within Automotive, Agro-processing and ICT sectors from both developing and advanced economies. Our results show that despite some differences, most of the determinants affect in a similar manner both the PFDI and TFDI which rather contradicts recent arguments claiming significant differences between the two. More interestingly however, we found that institutional determinants such as policies related to foreign direct investments play almost no role in internationalization process of firms while managerial (internal to the firm) determinants had a far greater impact.

Suggested Citation

  • Alvandi , Keyvan & Chaminade , Cristina & Lv, Ping, 2013. "Commonalities and differences between production-related FDI (PFDI) and technology-related FDI (TFDI) in developed and emerging economies," Papers in Innovation Studies 2013/47, Lund University, CIRCLE - Centre for Innovation Research.
    • Handle: RePEc:hhs:lucirc:2013_047
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    Keywords

    Foreign direct investment; Multinationals; Globalization; offshoring; TFDI;
    All these keywords.

    JEL classification:

    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • F68 - International Economics - - Economic Impacts of Globalization - - - Policy

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