Political party tenure and MNE location choices

Arkangel M Cordero () and Stewart R Miller ()
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Arkangel M Cordero: University of Texas – San Antonio
Stewart R Miller: University of Texas – San Antonio

Journal of International Business Studies, 2019, vol. 50, issue 6, No 6, 973-997

Abstract: Abstract We develop a theoretical framework to explain how political party tenure affects MNE entries into an economy. We leverage insights from the upper echelon and public administration literatures to argue that there is a curvilinear relationship between political party tenure and MNE entries. Moreover, we argue that political parties with an excessive tenure are less responsive to MNEs and more corrupt. Therefore, we further explain the mediating effects of government bureaucratic responsiveness and government corruption on that relationship. We test our theory using a sample of manufacturing MNEs entering into Mexican cities. The results support our theory.

Keywords: location strategy; political aspects of MNE activity; Poisson models (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (13)

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DOI: 10.1057/s41267-019-00220-0

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