[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/eee/rujoec/v3y2017i4p445-474.html
   My bibliography  Save this article

Multinational companies from transition economies and their outward foreign direct investment

Author

Listed:
  • Andreff, Wladimir
  • Andreff, Madeleine
Abstract
Multinational companies (MNCs) based in 26 post-communist transition economies (PTEs) emerged during the 1990s. Their outward foreign direct investment (OFDI) boomed dramatically from 2000 to 2007 in these countries, and then muddled through the financial crisis and great recession at difference paces on different paths. This difference is revealed in a sample of 15 PTEs for which data are available from 2000 to 2015. Most of these economies appear to be on the brink of moving from the second to the third stage of Dunning's investment development path. The geographical distribution of their OFDI favors host countries located in other PTEs, developed market economies, and tax havens while their industrial structure is more concentrated on services rather than on manufacturing and the primary sector. PTE-based MNCs primarily adopt a strategy of market-seeking OFDI.

Suggested Citation

  • Andreff, Wladimir & Andreff, Madeleine, 2017. "Multinational companies from transition economies and their outward foreign direct investment," Russian Journal of Economics, Elsevier, vol. 3(4), pages 445-474.
    • Handle: RePEc:eee:rujoec:v:3:y:2017:i:4:p:445-474
    DOI: 10.1016/j.ruje.2017.12.008
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S2405473917300636
    Download Restriction: no
    File URL: https://libkey.io/10.1016/j.ruje.2017.12.008?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Wladimir Andreff, 2007. "Transition through different corporate governance structures in postsocialist economies. Which convergence?," Post-Print halshs-00270132, HAL.
    2. Wladimir Andreff & Giovanni Balcet, 2013. "Emerging countries’ multinational companies investing in developed countries: at odds with the HOS paradigm?," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 10(1), pages 3-26, April.
    3. Agnieszka Klysik-Uryszek & Anetta Kuna-Marszalek, 2014. "Psychic and geographic distance in the process of firm internationalization. Example of companies from Poland and Lodz region," Business and Economic Horizons (BEH), Prague Development Center, vol. 10(1), pages 1-9, April.
    4. Klysik-Uryszek, Agnieszka & Kuna-Marszalek, Anetta, 2014. "Psychic and geographic distance in the process of firm internationalization. Example of companies from Poland and Lodz region," Business and Economic Horizons (BEH), Prague Development Center (PRADEC), vol. 10(1), pages 1-9.
    5. Mockaitis, Audra I. & Vaiginiene, Erika & Giedraitis, Vincent, 2006. "The internationalization efforts of lithuanian manufacturing firms--strategy or luck?," Research in International Business and Finance, Elsevier, vol. 20(1), pages 111-126, March.
    6. Wladimir Andreff, 2016. "Outward Foreign Direct Investment from BRIC countries: Comparing strategies of Brazilian, Russian, Indian and Chinese multinational companies," Post-Print halshs-01342391, HAL.
    7. Kálmán Kalotay, 2004. "Outward FDI from Central and Eastern European Countries," Economic Change and Restructuring, Springer, vol. 37(2), pages 141-172, June.
    8. Wladimir Andreff, 2015. "Maturing Strategies Of Russian Multinational Companies: Comparisons With Chinese Multinationals," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01287431, HAL.
    9. Wladimir Andreff, 1987. "Les multinationales," Post-Print halshs-00275897, HAL.
    10. Wladimir Andreff, 2014. "Outward foreign direct investment by Brazilian and Indian multinational companies: comparison with Russian-Chinese multinationals," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01279896, HAL.
    11. Wladimir Andreff, 2013. "Emerging countries' multinational companies investing in developed countries: at odds with the HOS paradigm?," Post-Print halshs-00874480, HAL.
    12. Wladimir Andreff, 2016. "Outward Foreign Direct Investment from BRIC countries: Comparing strategies of Brazilian, Russian, Indian and Chinese multinational companies," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01342391, HAL.
    13. Codruța Dura & Imola Drigă, 2012. "Russian Multinationals in Romania and their Impact upon the Romanian Economy," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 12(1), pages 109-120.
    14. Wladimir Andreff, 2003. "The newly emerging TNCs from economies in transition: a comparison with Third World outward FDI," Post-Print halshs-00274654, HAL.
    15. Wladimir Andreff, 1989. "Testing the Soviet-Type Industrialisation Model in Socialist-Orientated Developing Countries," Post-Print halshs-00277268, HAL.
    16. K. Schoors & B. Van Der Tol, 2002. "Foreign direct investment spillovers within and between sectors: Evidence from Hungarian data," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 02/157, Ghent University, Faculty of Economics and Business Administration.
    17. Urmas Varblane & Tonu Roolaht & Ele Reiljan & Rein Juriado, 2001. "Estonian Outward Foreign Direct Investments," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 9, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    18. John Dunning, 1981. "Explaining the international direct investment position of countries: Towards a dynamic or developmental approach," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 117(1), pages 30-64, March.
    19. Wladimir Andreff, 2013. "Emerging countries' multinational companies investing in developed countries: at odds with the HOS paradigm?," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00874480, HAL.
    20. Kalman Kalotay & Andrea Elteto & Magdolna Sass & Csaba Weiner, 2014. "Russian capital in the Visegrád countries," IWE Working Papers 210, Institute for World Economics - Centre for Economic and Regional Studies.
    21. Wladimir Andreff, 2002. "The new multinational corporations from transition countries," Post-Print halshs-00274655, HAL.
    22. Wladimir Andreff, 2007. "Transition through different corporate governance structures in postsocialist economies. Which convergence?," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00270132, HAL.
    23. Eric Rugraff, 2010. "Strengths and weaknesses of the outward FDI paths of the Central European countries," Post-Communist Economies, Taylor & Francis Journals, vol. 22(1), pages 1-17.
    24. Marian Gorynia & Jan Nowak & Radoslaw Wolniak, 2009. "Poland's Investment Development Path: in search of a synthesis," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 2(2), pages 153-174.
    25. Andreff, Wladimir, 2002. "The new multinational corporations from transition countries," Economic Systems, Elsevier, vol. 26(4), pages 371-379, December.
    26. Myra Wilkins, 1990. "Investissement étranger et financement de la croissance américaine (XIXe siècle-début du XXe)," Revue d'Économie Financière, Programme National Persée, vol. 14(2), pages 67-79.
    27. Ina Lejko & Štefan Bojnec, 2013. "The Dynamic Internationalization Model of Slovenian Born Global SMEs," Management, University of Primorska, Faculty of Management Koper, vol. 8(1), pages 71-86.
    28. Kornai Janos, 1994. "Transformational Recession: The Main Causes," Journal of Comparative Economics, Elsevier, vol. 19(1), pages 39-63, August.
    29. Marian GORYNIA & Jan NOWAK & Rados³aw WOLNIAK, 2010. "Foreign direct investment of Central and Eastern European countries, and the investment development path revisited," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 1, pages 21-36, December.
    30. Simona Gabriela Masca & Viorela Ligia Vaidean, 2010. "Outward FDI and the Investment Development Path in Romania," Romanian Journal of Economics, Institute of National Economy, vol. 31(2(40)), pages 49-64, December.
    31. Mariusz-Jan Radlo, 2012. "Emerging Multinationals and Outward FDI Development," Eastern European Economics, Taylor & Francis Journals, vol. 50(2), pages 59-84, March.
    32. Damijan, Jože & Kostevc, Crt & Rojec, Matija, 2014. "Outward FDI and company performance in CEECs," Working Paper Series in Economics and Institutions of Innovation 381, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    33. Jaan Masso & Urmas Varblane & Priit Vahter, 2008. "The Effect of Outward Foreign Direct Investment on Home-Country Employment in a Low-Cost Transition Economy," Eastern European Economics, Taylor & Francis Journals, vol. 46(6), pages 25-59, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Magdolna Sass & Jana Vlčková, 2019. "Just Look behind the Data! Czech and Hungarian Outward Foreign Direct Investment and Multinationals," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 69(supplemen), pages 73-105, December.
    2. K. Kalotay & A. Sulstarova, 2021. "FDI in the Post-Soviet Space Three Decades after the Disintegration of the Soviet Union," Outlines of global transformations: politics, economics, law, Center for Crisis Society Studies, vol. 14(5).
    3. Daxue KAN & Weichiao HUANG, 2019. "Empirical Study of the Impact of Outward Foreign Direct Investment on Water Footprint Benefit in China," Sustainability, MDPI, vol. 11(16), pages 1-16, August.
    4. Malgorzata Jaworek & Wlodzimierz Karaszewski, 2021. "The Largest Non-Financial Multinational Enterprises in the World and Those in Developing and Transition Economies," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 683-696.
    5. Xing Zhou & Quan Guo & Ming Zhang, 2021. "Impacts of OFDI on Host Country Energy Consumption and Home Country Energy Efficiency Based on a Belt and Road Perspective," Energies, MDPI, vol. 14(21), pages 1-25, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wladimir Andreff & Madeleine Andreff, 2017. "Multinational companies from transition economies and their outward foreign direct investment," Post-Print hal-03207032, HAL.
    2. Wladimir Andreff & Madeleine Andreff, 2017. "Multinational companies from transition economies and their outward foreign direct investment," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-03207032, HAL.
    3. Wladimir Andreff, 2015. "Maturing Strategies Of Russian Multinational Companies: Comparisons With Chinese Multinationals," Post-Print halshs-01287431, HAL.
    4. Damijan, Jože & Kostevc, Crt & Rojec, Matija, 2014. "Outward FDI and company performance in CEECs," Working Paper Series in Economics and Institutions of Innovation 381, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    5. Stoian, Carmen, 2013. "Extending Dunning's Investment Development Path: The role of home country institutional determinants in explaining outward foreign direct investment," International Business Review, Elsevier, vol. 22(3), pages 615-637.
    6. Björn Jindra & Sohaib S. Hassan & Jutta Günther & Uwe Cantner, 2015. "European Integration and Outward FDI from Central and Eastern Europe – Is There Any Evidence of Knowledge-seeking?," Journal of Common Market Studies, Wiley Blackwell, vol. 53(6), pages 1248-1267, November.
    7. Alessia Amighini & Claudio Cozza & Elisa Giuliani & Roberta Rabellotti & Vittoria Scalera, 2015. "Multinational enterprises from emerging economies: what theories suggest, what evidence shows. A literature review," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(3), pages 343-370, September.
    8. Wladimir Andreff, 2017. "New-Wave Emerging Multinational Companies: The Determinants of Their Outward Foreign Direct Investment," Post-Print hal-03231804, HAL.
    9. Wladimir Andreff, 2014. "Outward foreign direct investment by Brazilian and Indian multinational companies: comparison with Russian-Chinese multinationals," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01279896, HAL.
    10. Wladimir Andreff, 2017. "New-Wave Emerging Multinational Companies: The Determinants of Their Outward Foreign Direct Investment," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-03231804, HAL.
    11. Gorynia, Marian & Nowak, Jan & Trąpczyński, Piotr & Wolniak, Radosław, 2019. "Friend or Foe? On the role of institutional reforms in the investment development path of Central and East European economies," International Business Review, Elsevier, vol. 28(3), pages 575-587.
    12. Wladimir Andreff, 2014. "Outward foreign direct investment by Brazilian and Indian multinational companies: comparison with Russian-Chinese multinationals," Post-Print halshs-01279896, HAL.
    13. Wladimir Andreff, 2016. "Outward Foreign Direct Investment from BRIC countries: Comparing strategies of Brazilian, Russian, Indian and Chinese multinational companies," Post-Print halshs-01342391, HAL.
    14. Kayam, Saime S. & Hisarcıklılar, Mehtap & Kayalıca, Özgür, 2011. "Spoilt for Choice: Explaining the location choice of Turkish Transnationals," MPRA Paper 39150, University Library of Munich, Germany.
    15. Ipsmiller, Edith & Dikova, Desislava, 2021. "Internationalization from Central and Eastern Europe: A systematic literature review," Journal of International Management, Elsevier, vol. 27(4).
    16. Kuznetsov Alexey V. & Nevskaya Anastasia A., 2017. "Geography of FDI from Visegrad Countries in Russia," Bulletin of Geography. Socio-economic Series, Sciendo, vol. 36(36), pages 107-115, June.
    17. Wladimir Andreff, 2016. "Outward Foreign Direct Investment from BRIC countries: Comparing strategies of Brazilian, Russian, Indian and Chinese multinational companies," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01342391, HAL.
    18. Wladimir Andreff, 2015. "Outward Foreign Direct Investment from BRIC countries: Comparing strategies of Brazilian, Russian, Indian and Chinese multinational companies," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 12(2), pages 79-131, December.
    19. Kayam, Saime Suna, 2009. "Home market determinants of FDI outflows from developing and transition economies," MPRA Paper 16781, University Library of Munich, Germany.
    20. Vittorio Valli & Donatella Saccone, 2015. "Structural Change, Globalization and Economic Growth in China and India," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 12(2), pages 133-163, December.

    More about this item

    Keywords

    F21; F23; M16; O57; P29; outward foreign direct investment; multinational companies; post-communist transition economies; investment development path; linkage-leverage-learning; push factors;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • P29 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:rujoec:v:3:y:2017:i:4:p:445-474. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/russian-journal-of-economics .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.