Working Paper #2010-017
Drivers of Brazilian foreign investments – technology seeking and technology exploiting as determinants of emerging FDI
The 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 codes
-
- F21
- F23
- O33
- UNU-MERIT
- Working
- Papers
- ISSN
- 1871-9872
Cite this as
APA 7th ed.Pereira de Carvalho, F., Duysters, G., & Costa, I. (2010). Drivers of Brazilian foreign investments – technology seeking and technology exploiting as determinants of emerging FDI (UNU-MERIT Working Paper No. 2010-017). UNU-MERIT. https://unu-merit.nl/publications/working-papers/abstract/?id=3913