FDI and world heterogeneities: The role of absorptive capacities

It is generally agreed that foreign direct investment (FDI) flows can contribute to the local upgrading of host economies, whereas the diverse technological strategies of multinational companies (MNCs) can determine the existence and size of spillover effects. When considering FDI entry modes, merge...

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Detalles Bibliográficos
Autores: Álvarez González, María Isabel, Marín Sanz, Raquel
Tipo de recurso: informe técnico
Fecha de publicación:2008
País:España
Institución:Universidad Complutense de Madrid (UCM)
Repositorio:Docta Complutense
Idioma:inglés
OAI Identifier:oai:docta.ucm.es:20.500.14352/56436
Acceso en línea:https://hdl.handle.net/20.500.14352/56436
Access Level:acceso abierto
Palabra clave:Flujos de inversión directa extranjera (IDE)
Empresas multinacionales
Empresas
5311 Organización y Dirección de Empresas
Descripción
Sumario:It is generally agreed that foreign direct investment (FDI) flows can contribute to the local upgrading of host economies, whereas the diverse technological strategies of multinational companies (MNCs) can determine the existence and size of spillover effects. When considering FDI entry modes, merger and acquisitions (M&As) reveal a higher level of interaction with local productive systems than general FDI. Accordingly, their impacts may differ depending on the development level of countries and on the characteristics of national systems. Our aim is to exam the relative importance of local determinants explaining different choices of FDI entry. We explore both the strengths of the traditional explanation of FDI flows as well as the relevance of institutional stability and consolidation of national absorptive capabilities; the latter are considered key features of national systems. Our findings confirm that the factors at a country level affecting general FDI differ from those concerning cross-border M&As and support the need to investigate new drivers for attraction of FDI. Structural factors explain better the behaviour of FDI, whereas the factors of national systems of innovation are more closely correlated with the cross-border M&As trend. Finally, although international inequalities persist when both developed and developing countries are considered, it is interesting to note the importance of the heterogeneity that characterises the developing world as a topic for further research.