Emerging Economies’ Multinationals: General Features and Specificities of the Brazilian and Chinese Cases
The expansion of South-North and South-South FDI reflects the rise of cross-border capital flows, a distinguishing feature of the contemporary global economy, together with the increasing size and complexity of emerging market multinational corporations (EMNCs). Against this background, in emerging economies governments have become increasingly aware of the role outward FDI (OFDI) can play as an instrument to deepen the integration into the world economy. This paper analyzes recent trends in OFDI from Brazil and China. Using annual data for the period 1980 to 2006 for both countries, we test the well-known investment development path (IDP) theory, according to which the net outward investment position of a country depends on its level of development. Results show that both China and Brazil are moving towards the third stage of the path, where domestic firms have acquired ownership and other advantages to go abroad and become leading outward investors. The role of governments, institutions and the characteristics of domestic firms in both countries are considered to be crucial factors in determining the movement along the path.
|Date of creation:||Oct 2008|
|Date of revision:||Oct 2008|
|Contact details of provider:|| Postal: via Sarfatti, 25 - 20136 Milano - Italy|
Web page: http://www.kites.unibocconi.it/
|Order Information:|| Postal: E G E A - via R. Sarfatti, 25 - 20136 Milano -Italy|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Pereira de Carvalho, Flavia & Goldstein, Andrea, 2008. "The making of national giants: technology and governments shaping the international expansion of oil companies from Brazil and China," MERIT Working Papers 021, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
- Liu, Xiaohui & Buck, Trevor & Shu, Chang, 2005. "Chinese economic development, the next stage: outward FDI?," International Business Review, Elsevier, vol. 14(1), pages 97-115, February.
- Bonaglia, Federico & Goldstein, Andrea & Mathews, John, 2006.
"Accelerated Internationalisation by Emerging Multinationals: the Case of White Goods Sector,"
1485, University Library of Munich, Germany.
- Federico BONAGLIA & Andrea GOLDSTEIN & John MATHEWS, 2006. "Accelerated Internationalisation by Emerging Multinationals: the Case of White Goods Sector," Working Papers 270, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
- Frank Barry & Holger Görg & Andrew McDowell, 2001.
"Outward FDI and the investment development path of a late-industrialising economy : evidence from Ireland,"
200108, School of Economics, University College Dublin.
- Frank Barry & Holger Gorg & Andrew Mcdowell, 2003. "Outward FDI and the Investment Development Path of a Late-industrializing Economy: Evidence from Ireland," Regional Studies, Taylor & Francis Journals, vol. 37(4), pages 341-349.
- Dilek Aykut & Andrea Goldstein, 2006. "Developing Country Multinationals: South-South Investment Comes of Age," OECD Development Centre Working Papers 257, OECD Publishing.
- Deng, Ping, 2004. "Outward investment by Chinese MNCs: Motivations and implications," Business Horizons, Elsevier, vol. 47(3), pages 8-16.
- Ramkishen Rajan & Graham Bird, 2001. "Economic Globalisation," World Economics, World Economics, Economic & Financial Publishing, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 2(3), pages 1-18, July.
- Van Horen, Neeltje, 2007. "Foreign banking in developing countries; origin matters," Emerging Markets Review, Elsevier, vol. 8(2), pages 81-105, May.
- Francisco B. Castro, 2004. "Foreign Direct Investment in a Late Industrialising Country: The Portuguese IDP Revisited," FEP Working Papers 147, Universidade do Porto, Faculdade de Economia do Porto.
When requesting a correction, please mention this item's handle: RePEc:cri:cespri:wp223. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Valerio Sterzi)
If references are entirely missing, you can add them using this form.