Market Familiarity and the Location of South and North MNEs

39 Pages Posted: 13 Oct 2012

See all articles by Celine Azemar

Celine Azemar

University of Glasgow

Julia Darby

University of Strathclyde, Glasgow - Strathclyde Business School - Department of Economics

Rodolphe Desbordes

SKEMA Business School

Ian Wooton

University of Strathclyde - Department of Economics; Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute)

Date Written: November 2012

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.

Suggested Citation

Azemar, Celine and Darby, Julia and Desbordes, Rodolphe and Wooton, Ian, Market Familiarity and the Location of South and North MNEs (November 2012). Economics & Politics, Vol. 24, Issue 3, pp. 307-345, 2012, Available at SSRN: https://ssrn.com/abstract=2161139 or http://dx.doi.org/10.1111/j.1468-0343.2012.00400.x

Celine Azemar

University of Glasgow

Adam Smith Business School
Glasgow, Scotland G12 8LE
United Kingdom

Julia Darby

University of Strathclyde, Glasgow - Strathclyde Business School - Department of Economics ( email )

Sir William Duncan Building
130 Rottenrow
Glasgow, G4 0GE
United Kingdom

HOME PAGE: http://www.economics.strath.ac.uk/julia/

Rodolphe Desbordes

SKEMA Business School ( email )

Lille
France

Ian Wooton

University of Strathclyde - Department of Economics ( email )

Sir William Duncan Building
130 Rottenrow
Glasgow G4 0GE
United Kingdom

Centre for Economic Policy Research (CEPR)

London
United Kingdom

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

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