Home-Country Measures to Support Outward Foreign Direct Investment: Variation and Consequences

26 Pages Posted: 11 Jun 2020

See all articles by Florian Becker-Ritterspach

Florian Becker-Ritterspach

HTW Berlin - Faculty of Business and Law

Maria Allen

Manchester Metropolitan University

Knut Lange

University of London - School of Management

Matthew M.C. Allen

University of Manchester - Alliance Manchester Business School

Date Written: April 26, 2019

Abstract

The state, especially in emerging economies, plays a key role in influencing firm behaviour, including outward foreign direct investment (OFDI). Often literature on the state’s influence on OFDI stresses direct state ownership. However, the state can influence OFDI in several ways, including policy support and subsidies; the literature has largely overlooked these effects. We build on key insights from the comparative capitalisms literature to put forward a series of propositions on how home-country measures – in both emerging and developed economies – to boost OFDI will influence, inter alia, the volume, location and mode of firms’ investments abroad. We thus contribute to the literature by showing how government policies across a wide range of countries influence an important aspect of firm behaviour that has economic, social and environmental implications.

Keywords: multinational firms; international business; comparative capitalisms; investment policies; business objectives of the firm

Suggested Citation

Becker-Ritterspach, Florian and Allen, Maria and Lange, Knut and Allen, Matthew M.C., Home-Country Measures to Support Outward Foreign Direct Investment: Variation and Consequences (April 26, 2019). Transnational Corporations Journal, Vol. 26, No. 1, 2019, Available at SSRN: https://ssrn.com/abstract=3621994

Florian Becker-Ritterspach (Contact Author)

HTW Berlin - Faculty of Business and Law

Berlin, 10318
Germany

Maria Allen

Manchester Metropolitan University ( email )

All Saints
Manchester, M15 6BH
United Kingdom

Knut Lange

University of London - School of Management ( email )

Egham
Surrey, Egham TW20 8DG
United Kingdom

Matthew M.C. Allen

University of Manchester - Alliance Manchester Business School

Booth Street West
Manchester, M15 6PB
United Kingdom

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