Emerging Multinational Corporations: A Prominent Player in the Global Economy

Mustafa Sakr () and Andre Jordaan
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Mustafa Sakr: Department of Economics, University of Pretoria

No 201623, Working Papers from University of Pretoria, Department of Economics

Abstract: As emerging market multinational corporations (EMNCs) tend to remarkably expand their global presence, it is of the utmost importance to explore the salient attributes of such unfolding phenomenon. One of the key findings is that top EMNCs are displaying a leapfrogging internationalisation process. Moreover, natural resources related sectors, in particular energy, have been proven to dominate the non-financial industry structure of EMNCs. In addition, various interesting findings have been concluded by this article. Regarding the preferred destination for their outward foreign direct investment (OFDI), EMNCs currently tend to invest more in developing markets. However, the relevance of developed markets is growing over time. Available statistics furthermore exhibit that greenfield is often preferred above mergers and acquisitions (M&As) as an entry mode into developing markets. The opposite is true in developed markets. EMNCs are domiciled predominantly in BRICS countries which account collectively for most of the OFDI getting from EMs. Emerging African MNCs are dramatically losing ground in the EMNC landscape. Regarding internationalisation, ownership, industry and geographical structure and preferred entry modes, remarkable differences are easily seen in the salient features of EMNCs compared to those based in developed markets.

Keywords: Emerging MNCs; BRICS MNCs; African MNCs; emerging markets’ OFDI; differences between EMNCs and DMNCs (search for similar items in EconPapers)
JEL-codes: F21 P45 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2016-03
New Economics Papers: this item is included in nep-cis, nep-cse and nep-int
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Citations: View citations in EconPapers (1)

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