Outward Foreign Direct Investment in Emerging Economies

2020 ◽  
pp. 1244-1257
Author(s):  
Ahmet Oğuz Demir ◽  
Muhammad Moiz
Keyword(s):  
Foreign Direct Investment ◽  
Emerging Economies ◽  
Direct Investment ◽  
Outward Foreign Direct Investment ◽  
Competitive Advantages ◽  
Global Competitiveness ◽  
Developed Economies ◽  
Technological Readiness ◽  
Country Factors ◽  
Global Competitiveness Index

Outward Foreign Direct Investment (OFDI) has been utilized by developed economies to enter developing markets for competitive advantages. However, recent boom in OFDI from emerging economies has prompted the question as to why these economies are investing abroad? A modest amount of literature exists regarding China and India, however, Turkey being an emerging economy has been largely untapped when it comes to determinants of OFDI. This study uses the Global Competitiveness Index (GCI) to find host and home country factors which have led to OFDI from Turkey to their top 10 investment destinations for the past 10 years. The host country factors found to be significantly correlated with Turkish OFDI are innovation (Netherlands and Russia), technological readiness (Russia and UK), labor market efficiency (Netherlands), infrastructure (Netherlands), domestic market size (Germany), and exports (UK). The home factors found to be significantly correlated with Turkish OFDI are infrastructure and domestic competition.

Outward Foreign Direct Investment in Emerging Economies

2017 ◽  
pp. 244-257 ◽  
Author(s):  
Ahmet Oğuz Demir ◽  
Muhammad Moiz
Keyword(s):  
Foreign Direct Investment ◽  
Emerging Economies ◽  
Direct Investment ◽  
Outward Foreign Direct Investment ◽  
Competitive Advantages ◽  
Global Competitiveness ◽  
Developed Economies ◽  
Technological Readiness ◽  
Country Factors ◽  
Global Competitiveness Index

Outward Foreign Direct Investment (OFDI) has been utilized by developed economies to enter developing markets for competitive advantages. However, recent boom in OFDI from emerging economies has prompted the question as to why these economies are investing abroad? A modest amount of literature exists regarding China and India, however, Turkey being an emerging economy has been largely untapped when it comes to determinants of OFDI. This study uses the Global Competitiveness Index (GCI) to find host and home country factors which have led to OFDI from Turkey to their top 10 investment destinations for the past 10 years. The host country factors found to be significantly correlated with Turkish OFDI are innovation (Netherlands and Russia), technological readiness (Russia and UK), labor market efficiency (Netherlands), infrastructure (Netherlands), domestic market size (Germany), and exports (UK). The home factors found to be significantly correlated with Turkish OFDI are infrastructure and domestic competition.

scholarly journals Emerging Economy Inward and Outward Foreign Direct Investment: A Bibliometric and Thematic Content Analysis

2021 ◽  
Author(s):  
Keilla Dayane da Silva-Oliveira ◽  
Edson Keyso de Miranda Kubo ◽  
Michael J. Morley ◽  
Rodrigo Médici Cândido
Keyword(s):  
Foreign Direct Investment ◽  
Performance Analysis ◽  
Emerging Economies ◽  
Thematic Analysis ◽  
Direct Investment ◽  
Institutional Environment ◽  
Emerging Economy ◽  
Future Research ◽  
Outward Foreign Direct Investment ◽  
Outward Fdi

AbstractResearch examining emerging economy inward and outward foreign direct investment (FDI) flows is on a significant upward trajectory. In this bibliometric analysis covering 806 articles published between 1994 and 2019, we map key aspects of its contours. Our analysis proceeds in two sequential phases involving a performance analysis, followed by a thematic analysis. Our performance analysis unveils fundamental elements of the structure of the knowledge base. Our subsequent thematic analysis identifies three focal topics arising from identifiable shared qualities characterizing this literature. Firstly, we distinguish scholarship focused on inward FDI into emerging economies formed by two particular classes, namely ‘innovative FDI’ and ‘capital flows’. Our second theme covers outward FDI from these emerging economies and also comprises two specific classes referring to the ‘institutional environment’ and the ‘theoretical framework deployed’. Our final theme relates to an integrated body of knowledge explicating aspects of the location choice decision. Building on this analysis, we isolate a number of opportunities for future research.

A Critical Discourse of EI and CA in Emerging Economies: The Place of Nigeria Within the Global Innovation Ecosystems

2020 ◽  
Vol 6 (2) ◽  
pp. 295-314
Author(s):  
Lukman Raimi ◽  
Hassan Yusuf
Keyword(s):  
Emerging Economies ◽  
Secondary Data ◽  
Policy Implications ◽  
Research Approach ◽  
African Countries ◽  
Global Competitiveness ◽  
Technological Readiness ◽  
Innovation Ecosystems ◽  
Global Innovation ◽  
Global Competitiveness Index

This study explores the levels of and barriers to entrepreneurial innovation (EI) and competitive advantage (CA) in emerging economies, and situates the findings within the Nigeria’s global innovation ecosystems. A qualitative research approach is preferred relying on the secondary data extracted from the reports of Global Competitiveness Index (GCI) and enriched by scholarly works including insights from the reports of Global Entrepreneurship Index (GEI). The extracted data from the afore-mentioned sources were critically reviewed and analysed using content analysis to understand the connection between EI and CA. At the end of the analysis, the study found that for 10 years (2008–2017), Nigeria manifested low EI and CA on the GCI ranking, whereas other African countries such as Ghana, Cameroon and South Africa, with lesser economic resources, did comparatively better. Second, it was found that, the key barriers to EI and CA are infrastructural neglect, lack of strong regulatory institutions, weak macroeconomic environment, weak technological readiness, poor business sophistication and low innovation among others. The study improves understanding of theoretical, managerial and policy implications of EI and CA. It also provides appropriate strategic suggestions for stimulating EI and enhancing CA at both national and industry levels in Nigeria. The study contributes to the raging debates on EI and CA in emerging economies. It also supports the Schumpeter’s creative discovery theory and resource-based view of CA.

Psychic distance and outward foreign direct investment: the moderating effect of firm heterogeneity

2020 ◽  
Vol 58 (7) ◽  
pp. 1497-1515
Author(s):  
Chusheng Chen ◽  
Yun Zhan ◽  
Changjun Yi ◽  
Xue Li ◽  
Yenchun Jim Wu
Keyword(s):  
Foreign Direct Investment ◽  
Emerging Economies ◽  
Direct Investment ◽  
Multinational Firms ◽  
Firm Heterogeneity ◽  
Moderating Effect ◽  
Psychic Distance ◽  
Outward Foreign Direct Investment ◽  
Content Type ◽  
Foreign Experience

PurposeThis study investigates the effect of psychic distance (PD) on outward foreign direct investment (OFDI) by multinational firms originating in emerging economies and the moderating effect of firm heterogeneity on this relationship.Design/methodology/approachAn empirical analysis based on a negative binomial regression model is conducted using OFDI data from 2008 to 2017 on companies listed on the Shanghai and Shenzhen Stock Exchanges in China, an emerging economy.FindingsThe results suggest a U-shaped relationship between PD and OFDI by firms in emerging economies. Both executive foreign experience and state ownership negatively moderate the U-shaped relationship between PD and OFDI.Practical implicationsEmerging economies should encourage and guide multinational firms in engaging in OFDI and emphasize the advantages and disadvantages of PD for multinational firms. Additionally, non-sate-owned firms should recruit those who have a foreign education to provide support for OFDI by firms in emerging economies. Multinational firms should determine investment locations by consulting with executives with foreign experience to improve their ability to engage in OFDI.Originality/valueThis study combines macro and micro perspectives and integrates PD and firm heterogeneity into the same model with a sample of multinational firms originating in China. The findings support the existence of a PD paradox, which helps to enriching the theory on foreign direct investment.

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