دانلود رایگان مقاله فاصله فرا ملی و سرمایه گذاری مستقیم خارجی

ABSTRACT

In this paper, we draw on the demand-side perspective to suggest that host country local demand influences the relationship between cross-national distance and foreign direct investment (FDI). Using FDI outflows from the United States to a cross-sectional sample of 110 host countries over the period of 2006–2011, we find that distance negatively influences FDI, largely confirming previous research. However, our results also suggest that a host country's local demand mitigates the negative relationship between geographic, cultural and administrative distance and FDI outflows, while it aggravates the negative effect of political distance on FDI.

5. Discussion and conclusion

5.1. Contributions and implications Our study is one of the first attempts to systematically study the implications of the influence of host country local demand for the Uppsala internationalization model. Contrary to our expectation, we were unable to find support for the main effect of host country demand on FDI. This suggests that local demand may not influence FDI directly, but rather may be a catalyst that aids in addressing other reasons for not engaging in FDI. In particular, we find that host country local demand significantly mitigates the negative distance effect (i.e., geographic, administrative and cultural distances) on FDI, lending support for the notion that when MNEs are motivated to create value by satisfying host country local demand through FDI, it may be possible to lessen some of the crossnational distance barriers usually facing foreign firms. These results help us better understand the boundary conditions of the Uppsala internationalization model, and how it interacts with demand-side factors in predicting FDI. Thus, while the Uppsala model may hold in general, if host country local demand is high enough, foreign investors may still be willing to invest despite the high costs associated with psychic distance.