UNU-MERIT Working Papers Series
Drivers of Brazilian foreign investments – technology seeking and technology exploiting as determinants of emerging FDI
Flavia Pereira de Carvalho, Geert Duysters & Ionara Costa #2010-017The paper uses data from a recent survey on Brazilian firms to
investigate the role of technology in the internationalization of firms,
and whether if affects the destination of foreign investments. Emerging
markets FDI is a much-debated topic these days, and their
technology-seeking purpose is a strong driver for the
internationalization, as firms are searching for assets in order to
compete. We apply a logit model to seek for the influence of
determinants and some firms’ competitive advantages on the choice for
developed countries as a destination for Brazilian FDI. We also test
which modes of entry are preferred when investing in a developed
destination. Our results point out the importance of a skilled labor
force on the decisions to invest in developed destinations. We found out
that technology is an asset used as a competitive resource, and that
Brazilian firms do not undertake technology-seeking investments in
developed countries, and that acquisitions and Greenfield investments
are the main modes of entry.
Keywords: foreign direct investments, emerging markets, technology,
innovation, competitive advantages, multinational corporations.
JEL Classification: F21, F23, O33
UNU-MERIT Working Papers
ISSN 1871-9872
Download the working paper (PDF)
