Market familiarity and the location of South and North MNEs

Celine Azemar (), Julia Darby, Rodolphe Desbordes and Ian Wooton ()

Working Papers from Business School - Economics, University of Glasgow

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 behaviours of South MNEs (S-MNEs) and North MNEs (N-MNEs) in developing countries.

Keywords: South-South FDI; governance; institutions; familiarity; distance (search for similar items in EconPapers)
JEL-codes: F22 (search for similar items in EconPapers)
Date: 2012-04
New Economics Papers: this item is included in nep-cse and nep-int
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Citations: View citations in EconPapers (18)

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Related works:
Journal Article: Market Familiarity and the Location of South and North MNEs (2012)
Working Paper: Market Familiarity and the Location of South and North MNEs (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:gla:glaewp:2012_05

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