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Market Familiarity and the Location of South and North MNEs
Author(s) -
Azemar Celine,
Darby Julia,
Desbordes Rodolphe,
Wooton Ian
Publication year - 2012
Publication title -
economics and politics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.822
H-Index - 45
eISSN - 1468-0343
pISSN - 0954-1985
DOI - 10.1111/j.1468-0343.2012.00400.x
Subject(s) - multinational corporation , foreign direct investment , corporate governance , business , economic geography , international trade , international economics , economics , finance , macroeconomics
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.