Viewpoint escape FDI from emerging markets: clarifying and extending the concept

Peter Enderwick

International Journal of Emerging Markets, 2017, vol. 12, issue 3, 418-426

Abstract: Purpose - The purpose of this paper is to examine the concepts of escape FDI and institutional voids using an industry study within a large emerging market (China). The author shows how regulatory and structural weaknesses in the Chinese dairy sector may prompt “escape” investment and how outsider firms might use such a strategy to regain competitiveness. Design/methodology/approach - The paper develops and refines an important international business concept which has received very little research attention, within the setting of an industry study. Findings - The concept of escape FDI is critiqued and extended to consider cases where discrimination occurs and industry restructuring triggers escape FDI. Research limitations/implications - The discussion is based on a single industry and home country. Further work to develop and test these ideas in a broader context is needed. Practical implications - The author identifies the conditions most likely to trigger escape FDI as well as firm and home country characteristics favouring such a strategy. Originality/value - The author extends the concept of escape FDI in the context of government-driven structural reform and political discrimination creating favoured “insider” firms and disadvantaged “outsiders”.

Keywords: China; Dairy industry; Escape FDI (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
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:eme:ijoemp:ijoem-11-2016-0325

DOI: 10.1108/IJoEM-11-2016-0325

Access Statistics for this article

International Journal of Emerging Markets is currently edited by Prof Ilan Alon

More articles in International Journal of Emerging Markets from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().