New Methods for Ex Post Evaluation of Regional Grouping Schemes in International Business Research: A Simulated Annealing Approach

37 Pages Posted: 19 Apr 2007

See all articles by Paul M. Vaaler

Paul M. Vaaler

University of Minnesota, Twin Cities - Law School and Carlson School of Management

Ruth V. Aguilera

Northeastern University - Department of International Business and Strategy

Ricardo Flores

affiliation not provided to SSRN

Date Written: April 2007

Abstract

International business research has long acknowledged the importance of regional factors for foreign direct investment ("FDI") by multinational corporations ("MNCs"). However, significant differences when defining these regions obscure the analysis about how and why regions matter. In response, we develop and empirically document support for a framework to evaluate alternative regional grouping schemes. We demonstrate application of this evaluative framework using data on the global location decisions by US-based MNCs from 1980-2000 and two alternative regional grouping schemes. We conclude with discussion of implications for future academic research related to understanding the impact of country groupings on MNC FDI decisions.

Keywords: Simulated Annealing, Regional Groups, Foreign Direct Investment, Multinationals

Suggested Citation

Vaaler, Paul M. and Aguilera, Ruth V. and Flores, Ricardo G, New Methods for Ex Post Evaluation of Regional Grouping Schemes in International Business Research: A Simulated Annealing Approach (April 2007). Available at SSRN: https://ssrn.com/abstract=981177 or http://dx.doi.org/10.2139/ssrn.981177

Paul M. Vaaler (Contact Author)

University of Minnesota, Twin Cities - Law School and Carlson School of Management ( email )

229 19th Avenue South
Minneapolis, MN 55455
United States
612-625-4951 (Phone)
612-626-1316 (Fax)

HOME PAGE: http://carlsonschool.umn.edu/faculty/paul-vaaler

Ruth V. Aguilera

Northeastern University - Department of International Business and Strategy ( email )

Boston, MA 02115
United States

Ricardo G Flores

affiliation not provided to SSRN

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