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Location strategy of emerging economy multinational enterprise

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  • Li, Lin
  • Du, Le

Abstract

This study investigates how state ownership, institutional diversity across subnational regions, and institutional instability shape the location strategies of emerging economy multinationals (EMNEs). The results show that state ownership significantly promotes EMNEs' foreign direct investments (FDIs) in non-home regions and developed countries. Furthermore, EMNEs originating from less institutionally developed regions exhibit a stronger preference for FDIs outside their home regions. While EMNEs often exhibit path dependence in their location choices, this effect diminishes in more dynamic institutional environments. These findings contribute to a better understanding of EMNEs' strategic decision-making processes and highlight the importance of considering institutional factors in internationalization strategies.

Suggested Citation

  • Li, Lin & Du, Le, 2025. "Location strategy of emerging economy multinational enterprise," International Review of Economics & Finance, Elsevier, vol. 101(C).
    • Handle: RePEc:eee:reveco:v:101:y:2025:i:c:s1059056025002849
    DOI: 10.1016/j.iref.2025.104121
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