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Résumé : L'article étudie le lien entre les investissements directs étrangers (IDE) et la distance institutionnelle. Dans le cadre des firmes hétérogènes, nous développons un modèle théorique pour expliquer comment la distance institutionnelle influe sur les IDE, et il est montré que cette distance réduit à la fois la probabilité d'une entreprise d'investir dans un pays étranger et le volume des investissements qu'elle entreprendra. Nous testons le modèle à l'aide de données d'IDE entrants et sortants sur les pays de l'OCDE. Les résultats empiriques confirment la théorie et indiquent que l'activité des IDE diminue avec la distance institutionnelle. En outre, nous constatons que les entreprises des économies développées s'adaptent plus facilement à la distance institutionnelle que les entreprises des pays en développement. Mots-clés : Investissements directs étrangers, Institutions, Firmes hétérogènes, Modèle de gravitéClassification JEL : F12, F23, H80, K20Abstract: This paper studies the link between foreign direct investment (FDI) and institutional distance. Using a heterogeneous firms framework, we develop a theoretical model to explain how institutional distance influences FDI, and it is shown that institutional distance reduces both the likelihood that a firm will invest in a foreign country and the volume of investment it will undertake. We test our model using inward and outward FDI data on OECD countries. The empirical results confirm the theory and indicate that FDI activity declines with institutional distance. In addition, we find that firms from developed economies adapt more easily to institutional distance than firms from developing economies.Keywords: Foreign direct investment, Institutions, Heterogeneous firms, Gravity model JEL Classification: F12, F23, H80, K20 Non-technical summary:The paper studies the link between foreign direct investments (FDI) and institutional distance. Using a heterogeneous firms' framework, we develop a theoretical model to explain how institutional distance influences decisions to invest in a foreign country and the volume invested. Multinational enterprises (MNEs) must adapt their strategies to local institutions when entering new foreign markets. And this strategy may differ from one country to another, depending on the host country institutions, and on the differences with the institutional framework that the investing firm is familiar. Our model suggests that MNEs face costs to adjust for the institutional environments of host countries, and that these costs increase with institutional distance. Therefore, institutional distance impacts the productivity threshold at which FDI is profitable and thus the number of multinational firms undertaking FDI. Furthermore, adaptation costs reduce FDI profitability such as the volume invested abroad declines with institutional distance.Then we test our model using inward and outward FDI data on OECD countries. Using alternative indicators of institutional distance, the empirical results confirm the theory. They suggest that bo...

This paper studies the link between Foreign Direct Investment (FDI) and institutional distance. Using a heterogeneous firms framework, we develop a theoretical model to explain how institutional distance influences FDI and it is shown that institutional distance reduces both the likelihood that a firm will invest in a foreign country and the volume of investment it will undertake. We test our model, using inward and outward FDI data on OECD countries. The empirical results confirm the theory and indicate that FDI activity declines with institutional distance. In addition, we find that firms from developed economies adapt more easily to institutional distance than firms from developing economies.

This paper studies the location pattern of Foreign Direct Investment (FDI) in Mexico for the period 1994-2004. An empirical model is specified based on recent FDI theories. This model is estimated using statelevel data and employing spatial econometric techniques. Results suggest that higher education levels and lower delinquency rates are important determinants to attract FDI. Results also suggest a relationship of complementarity between inbound FDI to the host state and inward FDI to its neighboring states.

Information and Communication Technologies (ICT) are transforming the business models and entrepreneurial ecosystems of different economic activities. As a result, the survival of some of these activities, especially physical markets, is under threat. This article aims to shed light on the distinct e-commerce mechanisms of wholesale markets that enable transforming and upgrading their ecosystem. The study combines insights from the scholarly debate on ecosystems, wholesale markets, and e-commerce with the empirical findings of a case study (a wholesale fruit market in Chongqing, China). By exploring the mechanisms and outcomes of e-commerce, this article shows that ICT adoption can be a threat as well as an opportunity for wholesale markets. On the one hand, transaction costs and marketing channel power might make physical wholesale markets less attractive for wholesalers and customers. On the other hand, network effects and business model innovation can enhance the traditional wholesale advantages of physical markets, in turn transforming and upgrading this traditional ecosystem into an entrepreneurial one.