Picture of two heads

Open Access research that challenges the mind...

The Strathprints institutional repository is a digital archive of University of Strathclyde research outputs. Strathprints provides access to thousands of Open Access research papers by University of Strathclyde researchers, including those from the School of Psychological Sciences & Health - but also papers by researchers based within the Faculties of Science, Engineering, Humanities & Social Sciences, and from the Strathclyde Business School.

Discover more...

Market familiarity and the location of South and North MNEs

Azémar, Céline and Darby, Julia and Desbordes, Rodolphe and Wooton, Ian (2012) Market familiarity and the location of South and North MNEs. Economics and Politics, 24 (3). pp. 307-345. ISSN 0954-1985

[img] PDF
ADDW_complete.pdf - Preprint

Download (2MB)

Abstract

We use a systematic empirical analysis of the determinants of South-South (SS) and North-South (NS) foreign direct investment (FDI) as a canvas to explore how multinational enterprises’ (MNEs) location decisions are shaped by better acquaintance with a foreign market resulting from bilateral ties, experience of international expansion, and knowledge of how to deal with poor governance. We find that these various aspects of market familiarity, which can interact together, are important to explain and differentiate the location behaviors of South MNEs (S-MNEs) and North MNEs (N-MNEs) in developing countries.