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Home-country measures to support outward foreign direct investment: variation and consequences

Author

Listed:
  • Florian Becker-Ritterspach
  • Maria L. Allen
  • Knut Lange
  • Matthew M. C. Allen

Abstract

The state, especially in emerging economies, plays a key role in influencing firm behaviour, including outward foreign direct investment (OFDI). Often literature on the state’s influence on OFDI stresses direct state ownership. However, the state can influence OFDI in several ways, including policy support and subsidies; the literature has largely overlooked these effects. We build on key insights from the comparative capitalisms literature to put forward a series of propositions on how home-country measures – in both emerging and developed economies – to boost OFDI will influence, inter alia, the volume, location and mode of firms’ investments abroad. We thus contribute to the literature by showing how government policies across a wide range of countries influence an important aspect of firm behaviour that has economic, social and environmental implications.

Suggested Citation

  • Florian Becker-Ritterspach & Maria L. Allen & Knut Lange & Matthew M. C. Allen, . "Home-country measures to support outward foreign direct investment: variation and consequences," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    • Handle: RePEc:unc:tncjou:26
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    2. David B. Audretsch & Maksim Belitski & Farzana Chowdhury & Sameeksha Desai, . "Home-country export regulations, credit markets, and corruption: implications for different types of internationalization," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    3. Shi, Buchao & Huang, Liangxiong & Wei, Shengmin & Geng, Xinyue, 2022. "Overseas industrial parks and China's outward foreign direct investment," Journal of Asian Economics, Elsevier, vol. 83(C).

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