Pro-Foreign Domestic Investment (FDI) policies have become a pillar of the development convention. While the literature has provided numerous studies on the effects of FDI on growth and investment in host country, very little is known about how domestic investment itself affects FDI inflows. The paper is an attempt to fill this gap. Evidences from a large cross-country sample (68 countries), over a long period , show that lagged domestic investment has a strong influence on FDI inflows in the host economy, implying that domestic investment is a strong catalyst for FDI in developing countries and that multinational companies do follow economic development.
This paper presents some stylized facts about the expansion of the Russian metallurgical industry from the early nineties to the aftermath of the global financial crisis of 2008-2009. It retraces the internationalization of these firms and examines the characteristics of this movement in terms of geographical and industrial orientation (horizontal, vertical upstream or downstream). The magnitude and speed of Russian metallurgical expansion abroad represent a great opportunity to discuss the literature on how firms become transnationals. After an assessment of the limits of the available theoretical tools and of the need to articulate micro-mechanisms and macro- and meso-dynamics, the paper provides an institutional and systemic explanatory framework.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.