Since 2014
Economic Institutions and the Outward FDI Location Strategies of Emerging Market Multinational Business Groups: Evidence from Central and Eastern European Countries
Review of Economics and Institutions
View Archive Info| Field | Value | |
| Title |
Economic Institutions and the Outward FDI Location Strategies of Emerging Market Multinational Business Groups: Evidence from Central and Eastern European Countries
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| Creator |
Hassan, Sohaib Shahzad; Friedrich Schiller University Jena and Max-Planck Institute of Economies, Jena, Germany
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| Subject |
International business; Economic institutions
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| Description |
Using an extensive data set on the Outward Foreign Direct Investment (OFDI) projects from Central and Eastern European Countries (CEEC), this study empirically examines the impacts of host country economic institutions, including property rights protection, corruption, taxation, business operating regulations and economic stability, on firms’ location decisions in the European Union (EU), while controlling for other conventional determinants of location choice. From a data set of 24,726 location decisions of 951 firms for a time period from 1995 to 2010, the robust empirical evidence suggests that a corruption-free country with a lower tax burden and friendly business regulations positively influence the OFDI location choice strategies of CEEC multinationals. However, these factors vary depending on whether the host country has an advanced economy (EU15: original member countries of the EU), or an emerging economy (CEEC). The effects of economic institutions are more profound on the location activities in the advanced economies of the EU than in other CEEC. Furthermore, CEEC investors generally prefer to be located in countries that have better institutions than their home countries.
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| Publisher |
University of Perugia
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| Contributor |
German Science Foundation (DFG)
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| Date |
2015-06-26
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
http://www.rei.unipg.it/rei/article/view/139
10.5202/rei.v6i1.139 |
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| Source |
Review of Economics and Institutions; Vol 6, No 1 (2015): Business groups in Emerging Economies; 41
2038-1379 2038-1344 |
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| Language |
eng
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| Relation |
http://www.rei.unipg.it/rei/article/view/139/157
http://www.rei.unipg.it/rei/article/downloadSuppFile/139/13 |
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| Rights |
As further described in our submission agreement, in consideration for publication of the article, the authors assign to the University of Perugia all copyright in the article, subject to the expansive personal-use exceptions described below. Attribution and Usage Policies Reproduction, posting, transmission or other distribution or use of the article or any material therein, in any medium as permitted by a personal-use exemption or by written agreement of the University of Perugia, requires credit to University of Perugia as copyright holder (e.g., University of Perugia © 20011). Personal-use ExceptionsThe following uses are always permitted to the author(s) and do not require further permission from University of Perugia provided the author does not alter the format or content of the articles, including the copyright notification:Posting of the article on the author(s) personal website, provided that the website is non-commercial;Posting of the article on the internet as part of a non-commercial open access institutional repository or other non-commercial open access publication site affiliated with the author(s)'s place of employment;Posting of the article on a non-commercial course website for a course being taught by the author at the university employing the author; andStorage and back-up of the article on the author's computer(s) and digital media (e.g., diskettes, back-up servers, Zip disks, etc.), provided that the article stored on these computers and media is not readily accessible by persons other than the author(s).People seeking an exception, or who have questions about use, should contact The Editor at editor.rei.journal@gmail.com
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