ODI from BRIC Countries: A Multi-country Empirical Analysis

  • Valeria Gattai
  • Rajssa Mechelli
  • Piergiovanna Natale


In this chapter, we study firm performance and Outward Direct Investment (ODI) from Brazil, Russia, India, and China (BRIC) through a multi-country econometric analysis. First, we present our firm-level data, highlighting distinctive features of the ORBIS database that make it particularly suitable for our purposes. Second, we introduce our taxonomy of ODI, detailing the different classes of ODI involvement that mark our main departure from the literature. Third, we study the ODI involvement and the ODI-performance nexus of BRIC enterprises through econometric analysis. Econometric models and specifications are described in detail and estimation results are presented with the help of summarizing tables. This strategy helps in commenting on the empirical evidence and drawing robust regularities from a multi-country perspective. First, BRIC firms engaged in ODI are in the minority. Second, within the group of investors, those firms having more than five foreign subsidiaries, investing in developing countries, or operating in joint ventures are in the minority. Third, the best performing firms engage in ODI. Fourth, within the group of investors, the best performing firms are more likely to rely on a large number of foreign subsidiaries, and less likely to invest in developing countries alone, or to operate exclusively in joint ventures.


ODI Firm performance Firm-level data Heterogeneous firms BRIC Econometric analysis 


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Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Valeria Gattai
    • 1
  • Rajssa Mechelli
    • 2
  • Piergiovanna Natale
    • 1
  1. 1.University of Milano-BicoccaMilanItaly
  2. 2.Catholic University of the Sacred HeartMilanItaly

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