Japanese Firms' Investment Strategies in Emerging Economies
48 Pages Posted: 18 Apr 2002
This study jointly examines the effects of organizational capabilities and public and private expropriation hazards on the level of equity ownership chosen for foreign subsidiaries in emerging markets. Specifically, we explore the mechanisms by which 660 Japanese multinational corporations draw upon industry-specific, country-specific and total international experience to mitigate these hazards in FDI for their 1,727 subsidiaries in 18 emerging markets. Results strongly support a novel specification that forges a link between the capabilities and the public and private expropriation hazards literatures.
Keywords: FDI, Political risk, Japan, International
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