Market familiarity and the location of South and North MNEs

Céline Azémar, Julia Darby, Rodolphe Desbordes, Ian Wooton

Research output: Contribution to journalArticle

5 Citations (Scopus)
70 Downloads (Pure)

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 behaviors of South MNEs (S-MNEs) and North MNEs (N-MNEs) in developing countries.
Original languageEnglish
Pages (from-to)307-345
Number of pages39
JournalEconomics and Politics
Volume24
Issue number3
Early online date2 Aug 2012
DOIs
Publication statusPublished - Nov 2012

Keywords

  • South-South FDI
  • governance
  • institutions
  • multinational enterprises
  • foreign direct investment

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