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Market familiarity and the location of South and North MNEs

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  • Celine Azemar
  • Julia Darby
  • Rodolphe Desbordes
  • Ian Wooton

Abstract

We use a systematic empirical analysis of the determinants of South-South (SS) and North-South (NS) foreign direct investment (FDI) as a canvas to explore how multinational enterprises’ (MNEs) location decisions are shaped by better acquaintance with a foreign market resulting from bilateral ties, experience of international expansion, and knowledge of how to deal with poor governance. We find that these various aspects of market familiarity, which can interact together, are important to explain and differentiate the location behaviours of South MNEs (S-MNEs) and North MNEs (N-MNEs) in developing countries.

Suggested Citation

  • Celine Azemar & Julia Darby & Rodolphe Desbordes & Ian Wooton, 2012. "Market familiarity and the location of South and North MNEs," Working Papers 2012_05, Business School - Economics, University of Glasgow.
  • Handle: RePEc:gla:glaewp:2012_05
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    Citations

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    Cited by:

    1. Ronald B. Davies & Rodolphe Desbordes & Anna Ray, 2015. "Greenfield versus Merger \& Acquisition FDI: Same Wine, Different Bottles?," The Institute for International Integration Studies Discussion Paper Series iiisdp469, IIIS.
    2. repec:hal:cesptp:halshs-01122659 is not listed on IDEAS
    3. repec:bla:worlde:v:39:y:2016:i:12:p:2000-2024 is not listed on IDEAS
    4. Rodolphe Desbordes & Gary Koop, 2014. "The Known Unknowns of Governance," Working Paper series 38_14, Rimini Centre for Economic Analysis.
    5. Nicola D. Coniglio & Rezart Hoxhaj & Adnan Seric, 2017. "The demand for foreign workers by foreign firms: evidence from Africa," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 153(2), pages 353-384, May.
    6. Alessia Amighini & Chiara Franco, 2012. "Agglomeration Effects in South-South FDI," DEGIT Conference Papers c017_032, DEGIT, Dynamics, Economic Growth, and International Trade.
    7. Ronald B. Davies & Rodolphe Desbordes & Anna Ray, 2015. "Greenfield versus Merger & Acquisition FDI: Same Wine, Different Bottles?," Working Papers halshs-01122659, HAL.

    More about this item

    Keywords

    South-South FDI; governance; institutions; familiarity; distance;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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