Skip to main content
SpringerLink
Log in

Determinants of Brazilian Outward Foreign Direct Investment: A Home Country Perspective

  • Chapter
Impacts of Emerging Economies and Firms on International Business

Abstract

During the last two decades, international economics and business researchers have produced a number of theoretical and empirical studies on evolution patterns and determinants of foreign direct investment (FDI). The focus of these studies has been on two main areas. The first one is associated with the dynamic development of multinational companies (MNCs) from developed countries. It aims to reveal the extent to which the global distribution of value-added activities has shaped the dynamics of these firms in the process of globalization. The second area explores determinants of FDI, including the economic, institutional, and social factors affecting and shaping MNCs’ strategies worldwide. These studies suggest that localization decisions influence overseas investments of MNCs. Moreover, their operations in different markets require firm-level adaptations and changes, which are especially demanding in the case of emerging economies. Through the global distribution of value-added activities, MNCs have become agents of value chain integration and economic development worldwide. In this global organization of MNCs’ operations, emerging economy MNCs (EEMNCs) have become important players, determining the competitive environment in an ever increasing number of markets all over the world.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Amal, M. and Raboch, H. (2010) Determinants of the FDI from developing countries: A panel data analysis, Paper presented at the Academy of International Business Annual Conference, 24–28 June 2010, Rio de Janeiro, Brazil.

    Google Scholar 

  • Amal, M., Raboch, H. and Tomio, B. (2009). Strategies and determinants of foreign direct investment (FDI) from developing countries: Case study of Latin America, Latin American Business Review, 10: 73–94

    Article  Google Scholar 

  • Arbix, G. (2010). Structural change and the emergence of the Brazilian MNEs, International Journal of Emerging Markets, 5(3/4): 266–288.

    Article  Google Scholar 

  • Bae, S. and Hwang, S. (1997). An empirical analysis of outward foreign direct investment of Korea and Japan, Multinational Business Review, 5(2): 71–80.

    Google Scholar 

  • BCG (2009). The 2008 BCG 100 New Global Challengers: How Top Companies from Rapidly Developing Economies Are Changing the World. Boston: Boston Consultancy Group.

    Google Scholar 

  • Bevan, A., Estrin, S. and Meyer, K. (2004). Foreign investment location and institutional development in transition economies, International Business Review, 13(1): 43–64.

    Article  Google Scholar 

  • Blomstrom, M. and Kokko, A. (1996). Multinational corporations and spillovers. Working Paper Series in Economics and Finance Number99, Stockholm: Stockholm School of Economics.

    Google Scholar 

  • Buckley, P. and Casson, M. (1976). The Future of the Multinational Enterprise. London: Homes and Meier.

    Google Scholar 

  • Buckley, P.J., Clegg, J., Cross, A.R., Liu, X., Voss, H. and Zheng, P. (2007). The determinants of Chinese outward foreign direct investment, Journal of International Business Studies, 38(4): 499–518.

    Article  Google Scholar 

  • Chen, K., Rau, H. and Lin, C. (2006). The impact of exchange rate movements on foreign direct investment: Market-oriented versus cost-oriented, The Developing Economies, 44(3): 269–287.

    Article  Google Scholar 

  • Cheng, L.K. and Ma, Z. (2007). China’s outward FDI: Past and future, SERUC Working Paper Series No. 200706001E.

    Google Scholar 

  • Chittoor, R., Ray, S., Aulakh, P. and Sarkar, M. (2008). Strategic responses to institutional changes: ‘Indigenous growth’ model of the Indian pharmaceutical industry, Journal of International Management, 14(3): 252–269.

    Article  Google Scholar 

  • Cristini, M.; Amal, M. (eds) (2006). Investimento Direto Externo no MERCOSUL: o papel da Europa. Rio de Janeiro: Konrad Adenauer Stiftung.

    Google Scholar 

  • Cuervo-Cazurra, A. (2007). Sequence of value-added activities in the multinationalization of developing country firms, Journal of International Management, 13(3): 258–277.

    Article  Google Scholar 

  • Dunning, J. (1988). The eclectic paradigm of international production: A restatement and possible extensions, Journal of International Business Studies, 19(1): 1–31.

    Article  Google Scholar 

  • Dunning, J. (2000). The eclectic paradigm as an envelope for economic and business theories of MNE activity, International Business Review, 9(2): 163–190.

    Article  Google Scholar 

  • Dunning, J. and Lundan, S.M. (2008). Multinational Enterprises and he Global Economy. Cheltenham: Edward Elgar Publishing.

    Google Scholar 

  • Dunning, J. and Narula, R. (1996). The investment development path revisited: Some emerging issues, in J. Dunning and R. Narula (eds) Foreign Direct Investment and Governments: Catalysts for economic restructuring. London: Routledge.

    Google Scholar 

  • ECLAC. (2009). La Inversión Extranjera Directa en América Latina y el Caribe. Santiago: United Nations.

    Google Scholar 

  • Enderwick, P. (2009). Large emerging markets (LEMs) and international strategy, International Marketing Review, 26(1): 7–16.

    Article  Google Scholar 

  • Fan, D., Nyland, C. and Zhu, C. (2008). Strategic implications of global integration and local responsiveness for Chinese multinationals: An area for future study, Management Research News, 31(12): 922–940.

    Article  Google Scholar 

  • Faria, A. and Mauro, P. (2009). Institutions and the external capital structure of countries, Journal of International Money and Finance, 28: 367–391.

    Article  Google Scholar 

  • Fleury, A. and Fleury, M. (2009). Understanding the strategies of late-movers in international manufacturing, International Journal of Production Economics, 122(1): 340–350.

    Article  Google Scholar 

  • Frenkel, M., Funke, K. and Stadtmann, G. (2004). A panel analysis of bilateral FDI flows to emerging economies, Economic Systems, 28(3): 281–300.

    Article  Google Scholar 

  • Fung, K.C., Garcia-Herrera, A. and Siu, A. (2009). A comparative empirical examination of outward foreign direct investment from four Asian economies: People’s Republic of China, Japan, Republic of Korea, and Taipei, PR of China, Asian Development Review, 26(2): 86–101.

    Google Scholar 

  • Gammeltoft, P., Pradhan, J. and Goldstein, A. (2010). Emerging multinationals: Home and host country determinants and outcomes, International Journal of Emerging Markets, 5(3/4): 254–265.

    Article  Google Scholar 

  • Goldstein, A. and Pusterla, F. (2010). Emerging economies’ multinationals: General features and specificities of the Brazilian and Chinese cases, International Journal of Emerging Markets, 5(3/4): 289–306.

    Article  Google Scholar 

  • Hymer, S.H. (1960). The International Operations of National Firms: A Study of Direct Foreign Investment. PhD Dissertation, Published posthumously, 1976, Cambridge, MA: The MIT Press.

    Google Scholar 

  • Kalotay, K. and Sulstarova, A. (2010). Modelling Russian outward FDI, Journal of International Management, 16(2): 131–142,

    Article  Google Scholar 

  • Kapuria-Foreman, V. (2008). Economic freedom and foreign direct investment in developing countries, Journal ofDevelopingAreas, 41(1): 143–155.

    Google Scholar 

  • Kolstad, I. And Wiig, A. (2009). What determines Chinese outward FDI? Christian Michelsen Institute, Working Paper 3, Bergen, Norway.

    Google Scholar 

  • Kyrkilis, D. and Pantelidis, P. (2003). Macroeconomic determinants of foreign direct investment, International Journal of Social Economics, 30(9): 827–836.

    Article  Google Scholar 

  • Kyrkilis, D. and Pantelidis, P. (2005). A cross country analysis of outward foreign direct investment pattern, International Journal of Social Economics, 32(6): 510–519.

    Article  Google Scholar 

  • Li, P. (2003). Toward a geocentric theory of multinational evolution: The implications from the Asian MNEs as latecomers, Asia Pacific Journal of Management, 20(3): 217–242.

    Article  Google Scholar 

  • Luo, Y. and Tung, R. (2007). International expansion of emerging market enterprises: A springboard perspective, Journal of International Business Studies, 38(5): 481–498.

    Article  Google Scholar 

  • Luo, Y., Xue, Q. and Han, B. (2010). How emerging market governments promote outward FDI: Experience from China. Journal of World Business, 45(1): 68–79.

    Article  Google Scholar 

  • McMillan, J. (2007). Market institutions, in S. Blume and L. Durlauf (eds) The New Palgrave Dictionary of Economics, Second edition. London: Palgrave Macmillan.

    Google Scholar 

  • Mudambi, R. and Navarra, P. (2002). Institutions and international business: A theoretical overview, International Business Review, 11(1): 35–55.

    Article  Google Scholar 

  • North, D. (1990). Institutions, Institutional Change and Economic Performance. Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • Pangarkar, N. and Lim, H. (2003). Performance of Foreign Direct Investment From Singapore, International Business Review, 12(7): 601–624.

    Article  Google Scholar 

  • Peng, M., Wang, D. and Jiang, Y. (2008). An institution-based view of international business strategy: A focus on emerging economies, Journal of International Business Studies, 39(10): 920–936.

    Article  Google Scholar 

  • Rasiah, R., Gammeltoft, P. and Jiang, Y. (2010). Home government policies for outward FDI from emerging economies: lessons from Asia, International Journal of Emerging Market, 5(3/4): 333–357.

    Article  Google Scholar 

  • Rugman, A. and Oh, C. (2008). Korea’s multinationals in a regional world, Journal of World Business, 43(1): 5–15.

    Article  Google Scholar 

  • Seo, J. and Suh, C. (2006). An analysis of home country trade effects of outward foreign direct investment: The Korean experience with ASEAN, 1987–2002, ASEAN Economic Bulletin, 23(2): 160–170.

    Article  Google Scholar 

  • Stal, E. and Cuervo-Cazurra, A. (2011). The investment development path and FDI from developing countries: The role of pro-market reforms and institutional voids, Latin American Business Review, 12(3): 209–231.

    Article  Google Scholar 

  • Swenson, D. (2004). Foreign investment and the mediation of trade flows, Review of International Economics, 12(4): 609–629.

    Article  Google Scholar 

  • Thomas, D. and Grosse, R. (2001). Country-of-origin determinants of foreign direct investment in an emerging market: The case of Mexico, Journal of International Management, 7(1): 59–79.

    Article  Google Scholar 

  • UNCTAD (2007). World Investment Report. Geneva and New York: United Nations.

    Google Scholar 

  • UNCTAD (2008). World Investment Report. Geneva and New York: United Nations.

    Google Scholar 

  • UNCTAD (2009). World Investment Report. Geneva and New York: United Nations.

    Google Scholar 

  • UNCTAD (2010). World Investment Report. Geneva and New York: United Nations.

    Google Scholar 

  • UNCTAD (2011). Website from the United Nations Conference for Trade and Development. Available at http://www.unctad.org.

  • Vernon, R. (1966). International investments and international trade in the product cycle, Quarterly Journal of Economics, 80(2): 190–207.

    Article  Google Scholar 

  • Williamson, O. (1975). Markets and Hierarchies: Analysis and Antitrust Implications. New York: The Free Press.

    Google Scholar 

  • Witt, M. and Lewin, A. (2007). Outward foreign direct investment as escape response to home country institutional constraints, Journal of International Business Studies, 38(6): 579–594.

    Article  Google Scholar 

  • Xing, Y. and Wan, G. (2006). Exchange rates and competition for FDI in Asia, World Economy, 29(4): 419–434.

    Article  Google Scholar 

Download references

Authors
  1. Mohamed Amal
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Patricia Luiza Kegel
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. University of Gloucestershire, Cheltenham, Gloucestershire, UK

    Marin A. Marinov

  2. Aalborg University, Aalborg, Denmark

    Svetla T. Marinova

Copyright information

© 2012 Mohamed Amal and Patricia Luiza Kegel

About this chapter

Cite this chapter

Amal, M., Kegel, P.L. (2012). Determinants of Brazilian Outward Foreign Direct Investment: A Home Country Perspective. In: Marinov, M.A., Marinova, S.T. (eds) Impacts of Emerging Economies and Firms on International Business. Palgrave Macmillan, London. https://doi.org/10.1057/9781137032546_9

Download citation

Publish with us

Policies and ethics

Search

Navigation