Market familiarity and the location of South and North MNEs

Azemar, C. , Darby, J., Desbordes, R. and Wooton, I. (2012) Market familiarity and the location of South and North MNEs. Economics and Politics, 24(3), pp. 307-345. (doi: 10.1111/j.1468-0343.2012.00400.x)

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Publisher's URL: http://dx.doi.org/10.1111/j.1468-0343.2012.00400.x

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

Item Type:Articles
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Azemar, Professor Celine
Authors: Azemar, C., Darby, J., Desbordes, R., and Wooton, I.
College/School:College of Social Sciences > Adam Smith Business School > Economics
Journal Name:Economics and Politics
ISSN:0954-1985
ISSN (Online):1468-0343
Published Online:02 August 2012

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