Determinants of Brazilian Outward Foreign Direct Investment: A Home Country Perspective

Abstract

During the last two decades, international economics and business researchers have produced a number of theoretical and empirical studies on evolution patterns and determinants of foreign direct investment (FDI). The focus of these studies has been on two main areas. The first one is associated with the dynamic development of multinational companies (MNCs) from developed countries. It aims to reveal the extent to which the global distribution of value-added activities has shaped the dynamics of these firms in the process of globalization. The second area explores determinants of FDI, including the economic, institutional, and social factors affecting and shaping MNCs' strategies worldwide. These studies suggest that localization decisions influence overseas investments of MNCs. Moreover, their operations in different markets require firm-level adaptations and changes, which are especially demanding in the case of emerging economies. Through the global distribution of value-added activities, MNCs have become agents of value chain integration and economic development worldwide. In this global organization of MNCs' operations, emerging economy MNCs (EEMNCs) have become important players, determining the competitive environment in an ever increasing number of markets all over the world.