EconPapers    
Economics at your fingertips  
 

Does Experience Matter for Patterns of Expansion by US Companies in Latin America and the Caribbean?

W. Charles Sawyer, Rossitza Wooster () and R. Blanco Luisa ()
Additional contact information
R. Blanco Luisa: School of Public Policy, Pepperdine University, 24255 Pacific Coast Hwy, Malibu, CA 90263, USA

Global Economy Journal, 2015, vol. 15, issue 1, 1-24

Abstract: We describe expansion patterns by US companies in Latin America and the Caribbean (LAC) between 1980 and 2005 using a unique sample that utilizes country, industry and time-series information on firms’ investments. We build on previous research to explore the effect of experience on firms’ preference for equity commitment. Using the time-series properties of our data, we examine the extent to which previous investments in the region influence firms’ expansion patterns. Our analysis includes the traditional determinants of entry mode choices such as firm-specific factors, market-seeking factors, resource-seeking factors and country-specific factors. Bivariate probit results indicate that companies with previous experience in the region are more likely to commit equity going forward and this also holds for more recent companies with greater growth opportunities.

Keywords: foreign direct investment; entry mode; Latin America (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.1515/gej-2014-0060 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
Journal Article: Does Experience Matter for Patterns of Expansion by US Companies in Latin America and the Caribbean? (2015) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:glecon:v:15:y:2015:i:1:p:1-24:n:8

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/gej/html

DOI: 10.1515/gej-2014-0060

Access Statistics for this article

Global Economy Journal is currently edited by Jannett Highfill

More articles in Global Economy Journal from De Gruyter
Bibliographic data for series maintained by Peter Golla ().

 
Page updated 2025-03-31
Handle: RePEc:bpj:glecon:v:15:y:2015:i:1:p:1-24:n:8