Remember Me
Or use your Academic/Social account:


Or use your Academic/Social account:


You have just completed your registration at OpenAire.

Before you can login to the site, you will need to activate your account. An e-mail will be sent to you with the proper instructions.


Please note that this site is currently undergoing Beta testing.
Any new content you create is not guaranteed to be present to the final version of the site upon release.

Thank you for your patience,
OpenAire Dev Team.

Close This Message


Verify Password:
Verify E-mail:
*All Fields Are Required.
Please Verify You Are Human:
fbtwitterlinkedinvimeoflicker grey 14rssslideshare1
Stoian, Carmen R. (2013)
Languages: English
Types: Article
Subjects: H, H1
Recent years have seen an increase in outward foreign direct investment (OFDI) from emerging markets and post-communist economies alike. Given the specific institutional fabric of these countries, the question is whether mainstream theory can explain the drivers of foreign direct investment outflows or whether new theories are needed to explain this phenomenon. This paper aims to investigate the home country determinants of OFDI from post-communist economies. We augment the Investment Development Path (IDP) with explanations derived from institutional theory and explain the effects of home country institutional factors on the level of OFDI. We test our hypotheses using random effects estimations on a comprehensive panel dataset comprising of OFDI from 20 Central- and Eastern European countries. Our results support the IDP's main propositions but also highlight the importance of accounting for home country institutional factors when investigating the determinants of OFDI. In particular, we find that the inclusion of institutional variables increases the explanatory power of our models and that competition policy and overall institutional reforms play a crucial role in explaining OFDI from CEE countries with important implications for FDI theory.
  • The results below are discovered through our pilot algorithms. Let us know how we are doing!

    • 3. Conceptual framework
    • We argue that IDP alone does not explain the surge in outward foreign investment from postcommunist economies (Kalotay and Sulstarova, 2010; Kalotay, 2008), as the IDP does not account market TNCs today and developed-country TNCs thirty years ago. In: Sauvant, K.P., Mendoza, K and Ince, I. (eds.) The Rise of Transnational Corporations from Emerging Markets: Threat or Opportunity?. Cheltenham: Edward Elgar, 158-182.
    • Durán, J.J. & Ubeda, F. (2001). The investment development path: A new empirical approach and some theoretical issues. Transnational Corporations, 10(1), 1-34.
    • Durán, J.J. & Ubeda, F. (2005). The investment development path of newly developed countries. International Journal of the Economics of Business, 12(1), 123-137. Review of patterns in neighbourhood countries. Journal of Business Economics and Management, 6(3), 179-188.
    • Globeram, S. & Shapiro, D. (2008). Outward FDI and the economic performance of emerging markets. In: Sauvant, K.P., Mendoza, K and Ince, I. (eds.) The Rise of Transnational Corporations from Emerging Markets: Threat or Opportunity?. Cheltenham: Edward Elgar, 229-271.
    • Goh, S. K. & Wong, K.N. (2011). Ma government policy. Journal of Policy Modelling, 32 (3), 497-510.
    • Hattari, R. & Rajan, R. (2010). India as a source of outward direct investment. Oxford Development Studies, 38(4), 497-518.
    • Hoskisson, R.E., Eden, L., Lau, C.M. & Wright, M. (2000). Strategy in emerging economies. Academy of Management Journal, 43(3), 249-267.
    • JIM (2010) Emerging multinationals, emerging theory: Macro and micro-level perspectives. Journal of International Management, 16(2), 95-101.
    • Kalotay, K. & Sulstarova, A. (2010). Modelling Russian outward FDI. Journal of International Management, 16(2), 131-142.
    • Kalotay, K. (2008). Review. Russian transnationals and international investment paradigms. Research in International Business and Finance, 22(1), 85-107.
    • Kalotay, K. (2005). Outward foreign direct investment from Russia in a global context. Journal of East West Business, 11 (3/4), 9 22.
  • No related research data.
  • No similar publications.

Share - Bookmark

Download from

Cite this article