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Soft Power in emerging economies: A partial least squares – structural equation modeling exploratory analysis of the effects on outward foreign direct investment

Author

Listed:
  • Ricardo E. Buitrago R.

    (Tecnologico de Monterrey, Mexico; Universidad del Rosario, Colombia)

  • James Rajasekar

    (7349Morningside University, USA)

  • Jorge Alcaraz

    (27808Universidad de Monterrey, Mexico)

Abstract

This article discusses the linkage between Soft Power institutional conditions and their effects on inward foreign direct investment (IFDI) as a mediator of outward foreign direct investment (OFDI). We measured Soft Power through the use of selected indicators between 2016 and 2019. To evaluate the proposed Soft Power constructs and their relationship with IFDI – OFDI, we applied partial least squares – structural equation modeling (PLS-SEM) analysis. The model outcomes suggest that Government, Business, Culture, and Diplomacy conditions have a significant and positive effect on IFDI and OFDI. The findings are context-moderated due to the heterogeneity of the emerging economies evaluated.

Suggested Citation

  • Ricardo E. Buitrago R. & James Rajasekar & Jorge Alcaraz, 2023. "Soft Power in emerging economies: A partial least squares – structural equation modeling exploratory analysis of the effects on outward foreign direct investment," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 26(3), pages 211-234, September.
    • Handle: RePEc:sae:intare:v:26:y:2023:i:3:p:211-234
    DOI: 10.1177/22338659231152397
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    References listed on IDEAS

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