We empirically characterize how China is internationalizing the Renminbi by selectively opening up its domestic bond market and propose a dynamic reputation model to understand China's internationalization strategy. While previously closed to foreign investors, China has recently allowed major...

Existing evidence on the impact of foreign direct investment on domestic economies remains ambiguous. Positive technology spillovers of foreign investment may be outweighed by negative crowding out effect due to increased competition. In this paper, we employ a unique country/sector-level data...

Global engagement of firms can take a variety of forms. We argue that there are considerable advantages of developing models that allow for a wide set of alternatives of organizational form. We illustrate this firstly using plant level data which allows us to distinguish firms that serve only...

"Being international" has nearly become an undisputed aim for firms in a globalized world. Several papers find a positive relationship between foreign direct investment (FDI) and the home performance of firms. In this paper we address the "FDI - export" relationship to better understand this...

Relying on a large foreign direct investment (FDI) transaction level dataset, unique both in terms of disaggregation and time and country coverage, this paper examines patterns in greenfield (GF) versus merger & acquisition (MA) investment. Although both are found to seek out large markets with...

In this study we documents what determines the FDI and entry modes of emerging multinational enterprises from Poland across different sectors in the years 2003-2010. Using an original database on international acquisitions and greenfield foreign investments of Polish firms we find that...

Firms are pressured to operate globally to reap the benefits of other locations through foreign investment. This phenomenon occurs not only among multinational enterprises from developed countries but also younger multinational enterprises from developing countries. Various factors induce them...

This chapter is from the book "Conquering Global Markets: Secrets from the World's Most Successful Multinationals" which presents the findings of one of the largest research projects undertaken of its type. Senior executives from fifty multinational companies from sixteen countries were...

Purpose – The purpose of this study is to extend the classic country-specific advantage (CSA) – firm-specific advantage (FSA) framework by integrating an institution-based view of CSAs into the discussion of FSAs. In his classic CSA-FSA framework, Rugman suggests that successful...

The underlying model analyzes the first time foreign market entry decision of a representative investor who can choose between export and FDI. The model combines the proximity-concentration trade-off framework with the real option methodology and sheds light on the effects of productivity...