Institutional Quality and FDI to the South: An Analytical Approach

Rodolphe Desbordes, Julia Darby, Ian Wooton

Research output: Working paper › Discussion paper

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Abstract

We ask whether MNEs’ experience of institutional quality and political risk within their “home” business environments influences their decisions to enter a given country. We set out an explicit theoretical model that allows for the possibility that firms from South source countries may, by virtue of their experience with poor institutional quality, derive a competitive advantage over firms from North countries with respect to investing in destinations in the South. We show that the experience gained by such MNEs of poorer institutional environments may result in their being more prepared to invest in other countries with correspondingly weak institutions.
Original languageEnglish
Place of PublicationGlasgow
PublisherUniversity of Strathclyde
Pages1-17
Number of pages18
Volume11
Publication statusPublished - Aug 2011

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Multinational enterprises
Institutional quality
Business environment
Destination
Competitive advantage
Political risk
Institutional environment
Investing

Keywords

  • foreign direct investment
  • multinational enterprises
  • institutional quality

Cite this

Desbordes, R., Darby, J., & Wooton, I. (2011). Institutional Quality and FDI to the South: An Analytical Approach. (31 ed.) (pp. 1-17). Glasgow: University of Strathclyde.
Desbordes, Rodolphe ; Darby, Julia ; Wooton, Ian. / Institutional Quality and FDI to the South : An Analytical Approach. 31. ed. Glasgow : University of Strathclyde, 2011. pp. 1-17
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Desbordes, R, Darby, J & Wooton, I 2011 'Institutional Quality and FDI to the South: An Analytical Approach' 31 edn, University of Strathclyde, Glasgow, pp. 1-17.

Institutional Quality and FDI to the South : An Analytical Approach. / Desbordes, Rodolphe; Darby, Julia; Wooton, Ian.

31. ed. Glasgow : University of Strathclyde, 2011. p. 1-17.

Research output: Working paper › Discussion paper

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T1 - Institutional Quality and FDI to the South

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N2 - We ask whether MNEs’ experience of institutional quality and political risk within their “home” business environments influences their decisions to enter a given country. We set out an explicit theoretical model that allows for the possibility that firms from South source countries may, by virtue of their experience with poor institutional quality, derive a competitive advantage over firms from North countries with respect to investing in destinations in the South. We show that the experience gained by such MNEs of poorer institutional environments may result in their being more prepared to invest in other countries with correspondingly weak institutions.

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KW - foreign direct investment

KW - multinational enterprises

KW - institutional quality

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BT - Institutional Quality and FDI to the South

PB - University of Strathclyde

CY - Glasgow

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Desbordes R, Darby J, Wooton I. Institutional Quality and FDI to the South: An Analytical Approach. 31 ed. Glasgow: University of Strathclyde. 2011 Aug, p. 1-17.

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    Institutional quality and FDI to the south: an analytical approach

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