Institutional Quality and FDI to the South: An Analytical Approach
AbstractWe ask whether MNEsâ€™ experience of institutional quality and political risk within their â€œhomeâ€ business environments influences their decisions to enter a given country. We set out an explicit theoretical model that allows for the possibility that firms from South source countries may, by virtue of their experience with poor institutional quality, derive a competitive advantage over firms from North countries with respect to investing in destinations in the South. We show that the experience gained by such MNEs of poorer institutional environments may result in their being more prepared to invest in other countries with correspondingly weak institutions.
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Bibliographic InfoPaper provided by University of Strathclyde Business School, Department of Economics in its series Working Papers with number 11-31.
Length: 18 pages
Date of creation: Oct 2011
Date of revision:
Publication status: Published
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More information through EDIRC
foreign direct investment; multinational enterprises; institutional quality;
Other versions of this item:
- Desbordes, Rodolphe & Darby, Julia & Wooton, Ian, 2011. "Institutional Quality and FDI to the South An Analytical Approach," SIRE Discussion Papers 2011-70, Scottish Institute for Research in Economics (SIRE).
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
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- Alvaro Cuervo-Cazurra & Mehmet Genc, 2008. "Transforming disadvantages into advantages: developing-country MNEs in the least developed countries," Journal of International Business Studies, Palgrave Macmillan, vol. 39(6), pages 957-979, September.
- Julia Darby & Rodolphe Desbordes & Ian Wooton, 2010.
"Does Public Governance Always Matter? How Experience of Poor Institutional Quality Influences FDI to the South,"
1003, University of Strathclyde Business School, Department of Economics.
- Julia Darby & Rodolphe Desbordes & Ian Wooton, 2010. "Does Public Governance always Matter? How Experience of Poor Institutional Quality Influences FDI to the South," CESifo Working Paper Series 3290, CESifo Group Munich.
- Darby, Julia & Desbordes, Rodolphe & Wooton, Ian, 2010. "Does Public Governance Always Matter? How Experience of Poor Institutional Quality Influences FDI to the South," SIRE Discussion Papers 2010-14, Scottish Institute for Research in Economics (SIRE).
- Darby, Julia & Desbordes, Rodolphe & Wooton, Ian, 2009. "Does Public Governance Always Matter? How Experience of Poor Institutional Quality Influences FDI to the South," CEPR Discussion Papers 7533, C.E.P.R. Discussion Papers.
- Mariya Aleksynska & Olena Havrylchyk, 2011.
"FDI from the South: the Role of Institutional Distance and Natural Resources,"
2011-05, CEPII research center.
- Aleksynska, Mariya & Havrylchyk, Olena, 2013. "FDI from the south: The role of institutional distance and natural resources," European Journal of Political Economy, Elsevier, vol. 29(C), pages 38-53.
- Globerman, Steven & Shapiro, Daniel, 2002. "Global Foreign Direct Investment Flows: The Role of Governance Infrastructure," World Development, Elsevier, vol. 30(11), pages 1899-1919, November.
- Christian Daude & Ernesto Stein, 2007. "The Quality Of Institutions And Foreign Direct Investment," Economics and Politics, Wiley Blackwell, vol. 19(3), pages 317-344, November.
- Alvaro Cuervo-Cazurra, 2006. "Who cares about corruption?," Journal of International Business Studies, Palgrave Macmillan, vol. 37(6), pages 807-822, November.
- Alvaro Cuervo-Cazurra & Mary M Maloney & Shalini Manrakhan, 2007. "Causes of the difficulties in internationalization," Journal of International Business Studies, Palgrave Macmillan, vol. 38(5), pages 709-725, September.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Institutional Quality and FDI: An Analytical Approach
by aamighini in NEP-INT blog on 2012-01-20 16:23:49
- Peter Nunnenkamp & Maximiliano Sosa Andrés & Krishna Chaitanya Vadlamannati & Andreas Waldkirch, 2012. "What Drives India’s Outward FDI?," Kiel Working Papers 1800, Kiel Institute for the World Economy.
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