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

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  • Alvandi , Keyvan

    ()
    (CIRCLE, Lund University)

  • Chaminade , Cristina

    ()
    (CIRCLE, Lund University)

  • Lv, Ping

    ()
    (University of Chinese Academy of Sciences, China)

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    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.

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    Bibliographic Info

    Paper provided by Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy in its series CIRCLE Electronic Working Papers with number 2013/47.

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    Length: 28 pages
    Date of creation: 20 Dec 2013
    Date of revision:
    Handle: RePEc:hhs:lucirc:2013_047

    Contact details of provider:
    Postal: CIRCLE, Lund University, PO Box 117, SE-22100 Lund, Sweden
    Phone: +46 (0) 46 222 74 68
    Web page: http://www.circle.lu.se/
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    Related research

    Keywords: Foreign direct investment; Multinationals; Globalization; offshoring; TFDI;

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