New-Wave Emerging Multinational Companies: The Determinants of Their Outward Foreign Direct Investment

Wladimir Andreff ()
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Wladimir Andreff: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: Focusing on the fast growth of BRICS' outward foreign direct investment (OFDI) and multinational companies during the crisis has left unheeded that some other emerging economies also grow much faster than average in the global economy and has become significant and fast-growing direct investors abroad. A sample of such (thirteen) new-wave emerging countries (NWECs) is gathered on the criterion of being ranked among the most significant foreign direct investors in the global economy. The literature review exhibits only very few articles existing on such a topic so far. Descriptive statistics enable tracing OFDI by NWECs-based multinational companies back to the 1970s, checking its geographical orientation and industrial structure, and assessing the relative importance of cross-border mergers and acquisitions. Econometric estimation exhibits that direct investment moving off the NWECs is explained by so-called push factors such as the home country's GDP, GDP per capita, GDP rate of growth, the share of high-technology exported products in overall export, the number of technological patents registered, and how much inward foreign direct investment stock has previously been hosted. These results are discussed in the light of Dunning's investment development path model and Matthews' linkage-leverage learning hypothesis.

Keywords: emerging countries; multinational companies; outward foreign direct investment; geographical distribution; industrial structure; cross-border mergers and acquisitions; push factors (search for similar items in EconPapers)
Date: 2017
Note: View the original document on HAL open archive server: https://hal.science/hal-03231804
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Published in Chinese Business Review, 2017, 16 (2), pp.55-81. ⟨10.17265/1537-1506/2017.02.001⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:hal-03231804

DOI: 10.17265/1537-1506/2017.02.001

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