Soft Power in emerging economies: A partial least squares – structural equation modeling exploratory analysis of the effects on outward foreign direct investment

Ricardo E. Buitrago R., James Rajasekar and Jorge Alcaraz
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Ricardo E. Buitrago R.: Tecnologico de Monterrey, Mexico; Universidad del Rosario, Colombia
James Rajasekar: 7349Morningside University, USA
Jorge Alcaraz: 27808Universidad de Monterrey, Mexico

International Area Studies Review, 2023, vol. 26, issue 3, 211-234

Abstract: This article discusses the linkage between Soft Power institutional conditions and their effects on inward foreign direct investment (IFDI) as a mediator of outward foreign direct investment (OFDI). We measured Soft Power through the use of selected indicators between 2016 and 2019. To evaluate the proposed Soft Power constructs and their relationship with IFDI – OFDI, we applied partial least squares – structural equation modeling (PLS-SEM) analysis. The model outcomes suggest that Government, Business, Culture, and Diplomacy conditions have a significant and positive effect on IFDI and OFDI. The findings are context-moderated due to the heterogeneity of the emerging economies evaluated.

Keywords: Soft Power; emerging economies; IFDI; OFDI; PLS-SEM (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:sae:intare:v:26:y:2023:i:3:p:211-234

DOI: 10.1177/22338659231152397

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