Effects of corruption on foreign direct investment: Evidence from Swedish multinational enterprises

Thede, Susanna; Karpaty, Patrik

doi:10.1016/j.jce.2022.10.004

Cited by 5 publications

(1 citation statement)

References 40 publications

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“…The previous literature indicates that logistic models are helpful for estimating the probability of the international investment decisions of firms (Kong et al , 2020; Saikia et al , 2020; Valentino et al , 2019). This probability considers diverse conditions, such as firm, home and host-country features (Clegg et al , 2018), and bilateral variables that reflect differences between source and destination countries (Thede and Karpaty, 2023). The logit model uses the maximum likelihood method for estimation, which avoids the assumption of multivariate normality and equal covariance matrixes (Fischer, 1973; Trueck and Rachev, 2009).…”

Section: Methodsmentioning

confidence: 99%

Effect of populism on the internationalization of emerging market firms

Alcaraz,

Martinez-Suarez,

Montoya

2023

EBR

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Purpose This paper aims to determine whether policy uncertainty caused by institutional decay in countries with populist rulers influences the internationalization decision of emerging market firms (EMFs). Design/methodology/approach The study used binary logit analysis on firms from Latin American countries undertaking cross-border greenfield investment projects. Findings The results suggest that internationalization decision is demotivated by policy uncertainty generated by populist chief executives and promoted by that of political parties. Originality/value This study uses populist rhetoric to describe policy uncertainty due to chief executives and ruling parties, which influences internationalization decision by increasing anticipated transaction costs. This inquiry identifies populism as a variable that influences EMFs to internationalize, while empirically testing the claim of theoretical scholarship that populism reconfigured the sociopolitical and institutional forces that shape the world’s business. This study further advances institutional theory by offering a fresh perspective on the influence of home instead of host-country institutions on the internationalization motivation of firms due to institutional decay caused by populist regimes.

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