Country-of-origin determinants of foreign direct investment in an emerging market: the case of Mexico

This paper adopts a cross-country, multisector approach to investigate the intra- and inter-industry effects of foreign direct investment (FDI) on the productivity of 15 emerging market economies in 2000 and 2008. Our main finding is that intra-industry FDI has a large positive effect on total and “exported” labor productivity. The effects of FDI on total factor productivity are much more elusive, both in statistical and economic terms. This result suggests that foreign firms raise the performance of their host economies through a direct compositional effect. Foreign firms tend to be larger and more input intensive and have greater access to foreign markets than domestic firms. Their greater prevalence mechanically increases average labor productivity and export performance.

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Foreign Direct Investment in Emerging Market Countries

The Global Race for Foreign Direct Investment ◽

10.1007/978-3-642-78309-8_8 ◽

1993 ◽

pp. 177-203 ◽

Cited By ~ 5

Author(s):

Thomas L. Brewer

Keyword(s):

Foreign Direct Investment ◽

Direct Investment ◽

Emerging Market ◽

Emerging Market Countries

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Outward Turkish foreign direct investment continues

Emerald Expert Briefings ◽

10.1108/oxan-db246876 ◽

2019 ◽

Keyword(s):

Foreign Direct Investment ◽

Market Economy ◽

Direct Investment ◽

Emerging Market ◽

Outward Fdi ◽

Content Type ◽

Know How ◽

The Past ◽

Set Up ◽

International Systems

Significance As an open emerging-market economy which usually runs large external deficits, Turkey has long sought to attract foreign direct investment (FDI), with varying degrees of success. At the same time, Turkish companies have been spending significant sums to acquire or set up businesses in other countries over the past 10-15 years. Impacts Turkey’s role as a source of FDI will strengthen Ankara’s influence in the countries that benefit or stand to benefit. The presence of Turkish investors in EU countries, Russia and the Middle East may help to defuse international tensions. Outward FDI may improve the competitiveness of Turkish companies through gains in know-how and integration into international systems.

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The Role of Governance on Outward Foreign Direct Investment in Emerging Market Economies

Outward Foreign Direct Investment (FDI) in Emerging Market Economies - Advances in Finance, Accounting, and Economics ◽

10.4018/978-1-5225-2345-1.ch005 ◽

2017 ◽

pp. 77-101 ◽

Cited By ~ 1

Author(s):

Adem Gök

Keyword(s):

Foreign Direct Investment ◽

Direct Investment ◽

Emerging Market ◽

Emerging Market Economies ◽

Outward Fdi ◽

Or Efficiency ◽

Market Economies ◽

Physical Infrastructure ◽

Governance Infrastructure

Emerging market economies have clear deficit in governance infrastructure and also have an increasing trend in the amount of foreign direct investment (FDI) outflows compared with advanced countries. Hence the main issue of the study is to identify the determinants leading to the increase in FDI outflows with special emphasize given to the role of governance infrastructure. Thus, the aim of the study is to analyze the effect of governance infrastructure together with other control variables on FDI outflows in emerging market economies. It is found that improvement in all measured aspects of governance infrastructure leads to increase in FDI outflows from emerging market economies and governance infrastructure, human capital and physical infrastructure are base factors for MNCs taking outward FDI decision from emerging market economies. It is also found that FDI outflows from emerging market economies are not market or efficiency seeking; instead they are resource, labor or finance seeking.

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