Comprehending the outward FDI from Latin America and OCED: A comparative perspective

Mazouz, Khelifa; Wood, Geoffrey; Yin, Shuxing; Zhang, Mao

doi:10.1016/j.ibusrev.2021.101853

Cited by 8 publications

(5 citation statements)

References 142 publications

(190 reference statements)

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“…The use of this integral framework, the geographic relational perspective, in conjunction with the institutional approaches we are employing, enables us to identify differences between our results and those obtained by former studies (Saikia et al, 2020;Sun et al, 2015) as well as similarities with results by other studies (Mazouz et al, 2021), but more importantly, the specific features that led to those results. Combining the ICs of the home and host countries and their interrelationships (Christofi et al, 2022) using dynamic and interactive perspectives (Fuentelsaz et al, 2022) is highly needed to assess EMFs' decisions.…”

Section: Discussionmentioning

confidence: 73%

“…In particular, Chinese state-owned enterprises tend to establish operations in countries with weak institutional systems, whereas the OFDI preference patterns of private enterprises are more nuanced (Yang, 2018). Furthermore, OFDIs from Latin American firms target geographically close countries with similar environments marked by corruption (Mazouz et al, 2021).…”

Section: Institutional Learningmentioning

confidence: 99%

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Interaction of home and host countries' institutional conditions: An analysis of greenfield projects by Latin American firms

Alcaraz

Mazé

2023

Thunderbird Intl Bus Rev

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Studying firms from emerging economies has been receiving more attention in recent decades. However, the host‐ and home‐country perspectives have allowed understanding, to a significant extent, of the firms' expansion abroad. We argue the necessity of investigating the interaction of home and host‐country institutional conditions to advance the understanding of the internationalization strategies of firms from emerging economies. Employing a sample of 1387 firms from 17 Latin American countries, we examine how their operations expanded from 2003 to 2019 by undertaking 2636 cross‐border greenfield projects in 94 host countries. Results indicate that the interaction of home and host countries' weak institutional conditions drives the decision‐making process for the internationalization of Latin American firms.

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Section: Discussionmentioning

confidence: 73%

Section: Institutional Learningmentioning

confidence: 99%

Interaction of home and host countries' institutional conditions: An analysis of greenfield projects by Latin American firms

Alcaraz

Mazé

2023

Thunderbird Intl Bus Rev

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“…Previous OFDI flow shows a positive and significant effects on the current FDI for all income economies classification. This suggests that past FDI is a good predictor of current FDI (Mazouz, Wood, Yin, & Zhang, 2021;Aziz, 2018). The OFDI lag of one-year period in the explanatory model are used to assess its dynamic effects.…”

Section: Resultsmentioning

confidence: 99%

Outward Fdi and International Trade: The Study of Causal Effects

Osabuohien-Irabor¹,

Drapkin²

2021

Proceedings of the 15th Economics &Amp; Finance Conference, Prague

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Numerous studies have examined whether the interrelationship between outward foreign direct investment (OFDI) and international trade are complementary or substitutive. However, one major concern of policymakers is the possibility of OFDI precipitating de-industrialization and jobs losses of domestic economy. This study critically addresses these views by examining the interaction between OFDI and disaggregate international trade based on world bank country income classification which includes, the low income, lower-middle income, upper-middle income, and High income for a panel of 179 countries for the period of 2003 -2019. Based on dynamic panel data model for system-GMM, empirical findings show that OFDI has negative and significant effects on exports and imports of low-income countries, an indication of a substitutional relationship. Regarding the effects of exports on OFDI, and with exception of low-income countries, we found a positive and significant relationship for in all income cluster, an indication of a complementarity relationship. This shows that home country's export is an important facilitator of OFDI. Overall, our empirical results support complementary effects on the dynamic interplay between OFDI and disaggregate international trade, suggesting a greater competitiveness in foreign markets as well as an increase in commercial integration.

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“…To avoid heteroskedasticity, we use robust standard errors (Belderbos et al , 2020; Yang, 2018) clustered on parent companies (instead of investing companies) that perform greenfield investment projects. Furthermore, we lag by one-year time-varying explanatory variables, which is a broadly accepted practice, to control and mitigate potential issues related to endogeneity (Alcaraz and Salamanca, 2018; Clegg et al , 2018; Mazouz et al , 2021; Saikia et al , 2020). We present the logit regression model as follows: where i refers to the firm of interest, j denotes home country and t represents the time of occurrence of OFDI, that is, firm decision to perform a greenfield international investment project.…”

Section: Methodsmentioning

confidence: 99%

Effect of populism on the internationalization of emerging market firms

Alcaraz,

Martinez-Suarez,

Montoya

2023

EBR

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Purpose This paper aims to determine whether policy uncertainty caused by institutional decay in countries with populist rulers influences the internationalization decision of emerging market firms (EMFs). Design/methodology/approach The study used binary logit analysis on firms from Latin American countries undertaking cross-border greenfield investment projects. Findings The results suggest that internationalization decision is demotivated by policy uncertainty generated by populist chief executives and promoted by that of political parties. Originality/value This study uses populist rhetoric to describe policy uncertainty due to chief executives and ruling parties, which influences internationalization decision by increasing anticipated transaction costs. This inquiry identifies populism as a variable that influences EMFs to internationalize, while empirically testing the claim of theoretical scholarship that populism reconfigured the sociopolitical and institutional forces that shape the world’s business. This study further advances institutional theory by offering a fresh perspective on the influence of home instead of host-country institutions on the internationalization motivation of firms due to institutional decay caused by populist regimes.

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Comprehending the outward FDI from Latin America and OCED: A comparative perspective

Cited by 8 publications

References 142 publications

Interaction of home and host countries' institutional conditions: An analysis of greenfield projects by Latin American firms

Interaction of home and host countries' institutional conditions: An analysis of greenfield projects by Latin American firms

Outward Fdi and International Trade: The Study of Causal Effects

Effect of populism on the internationalization of emerging market firms

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