Institutional Quality and FDI to the South An Analytical Approach

Rodolphe Desbordes, Julia Darby and Ian Wooton ()

No 2011-70, SIRE Discussion Papers from Scottish Institute for Research in Economics (SIRE)

Abstract: We ask whether MNEs’ experience of institutional quality and political risk within their home business environments influences their decisions to enter a given country. We set out an explicit theoretical model that allows for the possibility that firms from South source countries may, by virtue of their experience with poor institutional quality, derive a competitive advantage over firms from North countries with respect to investing in destinations in the South. We show that the experience gained by such MNEs of poorer institutional environments may result in their being more prepared to invest in other countries with correspondingly weak institutions.

Keywords: foreign direct investment; multinational enterprises; institutional quality (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://hdl.handle.net/10943/353
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
Working Paper: Institutional Quality and FDI to the South: An Analytical Approach (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:edn:sirdps:353

Access Statistics for this paper

More papers in SIRE Discussion Papers from Scottish Institute for Research in Economics (SIRE) 31 Buccleuch Place, EH8 9JT, Edinburgh. Contact information at EDIRC.
Bibliographic data for series maintained by Research Office ().