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Foreign Direct Investment, Brand Value, and Economic Performance: A Multinational Analysis

Author

Listed:
  • Tuba Yıldız

    (Hatay Mustafa Kemal Üniversitesi)

  • Ünal Arslan

    (Hatay Mustafa Kemal Üniversitesi)

  • Zeynep Ökten

    (Nişantaşı Üniversitesi)

  • Yıldız Sağlam Çelıköz

    (Hatay Mustafa Kemal Üniversitesi)

  • Hale Kırmızıoğlu

    (Kırşehir Ahi Evran Üniversitesi)

Abstract

The visibility and dependability of multinational corporations’ products increase with the fact that they introduce their goods to markets in other nations through foreign direct investments. The method for presenting products to international markets through foreign direct investments reveals the product’s reputation and therefore the brand’s development value. This study examines the relationship between foreign direct investments and brand value in Australia, Canada, China, France, India, Japan, Spain, the USA, and the UK for the period 2007-2023. The majority of studies in the literature attempt to explain the impact of brand value on foreign direct investments. However, very few studies explain the impac foreign direct investments on brand value and 1st generation unit root tests were generally used. Unlike existing studies, In this study, the second-generation unit root test, Durbin-Hausman cointegration, and Common Correlated Effects Mean Group estimation methods were used. As a result, it is anticipated that this study will contribute to the literature in this regard. The findings show that increases in foreign direct investments boost brand value.

Suggested Citation

  • Tuba Yıldız & Ünal Arslan & Zeynep Ökten & Yıldız Sağlam Çelıköz & Hale Kırmızıoğlu, 2024. "Foreign Direct Investment, Brand Value, and Economic Performance: A Multinational Analysis," Istanbul Journal of Economics-Istanbul Iktisat Dergisi, Istanbul University, Faculty of Economics, vol. 74(2), pages 529-549, December.
    • Handle: RePEc:ist:journl:v:74:y:2024:i:2:p:529-549
    DOI: 10.26650/ISTJECON2024-1523470
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    References listed on IDEAS

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    4. Megbel Aleidan, 2021. "When Geography Matters: The potential role of Saudi Arabia’s Geographical Branding in Promoting FDI," International Journal of Business and Management, Canadian Center of Science and Education, vol. 14(1), pages 1-64, July.
    5. Gupta, Suraksha & Gallear, David & Rudd, John & Foroudi, Pantea, 2020. "The impact of brand value on brand competitiveness," Journal of Business Research, Elsevier, vol. 112(C), pages 210-222.
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