AIB Insights has published an article written in collaboration with Cristina Chaminade on Technology Driven FDI by Emerging Multinationals in Europe.
Technology-Driven FDI by Emerging Multinationals in Europe
FDI
Multinational enterprises from emerging economies: what theories suggest, what evidence shows. A literature review
Economia e Politica Industriale 42:3, 343-370
The article is co-authored with Alessia Amighini, Claudio Cozza, Elisa Giuliani and Vittoria Scalera
The phenomenon of Emerging Economy Multinational Enterprises (EMNEs) and their internationalization process have sparked the debate over the appropriateness of International Business theories to study EMNEs’ internationalization processes. The literature has extensively investigated what distinguishes EMNEs from Advanced Country Multinational Enterprises (AMNEs). This review summarizes and discusses some of the issues that have mostly attracted scholarly debate in this research area.
Interview with Business People
The Location Strategies of Multinationals from Emerging Countries in the EU Regions
UNU-MERIT Working Papers #2015-009
with Riccardo Crescenzi and Carlo Pietrobelli
This paper looks at the location choices of MNEs in the European Union (EU-25) regions and unveils that EMNEs follow distinctive location strategies. Their attraction into large regional markets is similar to AMNEs as well as their irresponsiveness to efficiency seeking motives. Conversely, the most knowledge-intensive investments respond mainly to strategic assets and the agglomeration of foreign investments in the same business functions.
Chinese and Indian Multinationals: A Firm-Level Analysis of their Investments in Europe
Papers in Innovation Studies #27 CIRCLE – Lund University
with Vito Amendolagine and Claudio Cozza
In this paper we undertake an empirical analysis of Chinese and Indian FDIs in Europe to investigate their identity and characteristics and the association between these features and their international business strategies. We exploit a dataset at the level of the investing firms. In relation to mode of entry, we find that the greenfield is a more likely option for large-sized companies, and that weak propensity for innovation is associated with a low probability to enter through a merger or acquisition. A high propensity for innovation is related to asset-seeking FDI, while high profitability is needed to invest in the core EU countries.
The impact of outward FDI on the performance of Chinese multinationals
BOFIT Discussion Papers 24 • 2014
with Claudio Cozza and Marco Sanfilippo
Using a new firm-level database, EMENDATA, this paper investigates the effects on Chinese multinational enterprises of Outward FDI (OFDI) into advanced European countries. Propensity score matching is combined with a difference-in-difference estimator to reduce the problems of self-selection of treated firms in foreign markets. The results provide robust evidence in support of the view that China’s OFDI had so far a positive impact on domestic activities in enhancing firms’ productivity and scales of operation.
Emerging Market Multinationals Investing in Europe: Threat or Opportunity?
Investigating Chinese Outward Foreign Direct Investments: How Can Firm-level Data Help?
China and the World Economy, 22, 6: 44-63
The article is written in collaboration with Alessia Amighini, Claudio Cozza and Marco Sanfilippo.
The empirical literature on China’s outward foreign direct investment mainly relies on aggregate data from official statistics, but the reliability of such data is currently a matter of concern because it does not take account of relevant features such as industry breakdown, ownership structure and entry mode. A novel firm-level database, EMENDATA, compiled by matching data from several available sources on various types of cross-border deals and including information on group structure, provides a more accurate picture and enables new empirical analyses of the rapidly increasing presence of Chinese companies abroad.
Se la multinazionale arriva da un paese emergente
Lavoce.info
An article about emerging multinationals investing in Europe and their impact on the local economy written with Elisa Giuliani. We investigate how subsidiaries of multinationals from both emerging (EMNEs) and advanced (AMNEs) economies investing in Europe learn from the local context and contribute to it as much as they benefit from it. There are EMNE subsidiaries that contribute through their significant local innovative efforts to development processes in the host country. This suggests possible win-win situations from which novel policy implications may be drawn.
Strategie europee delle multinazionali di Cina e India
Lavoce.info
With Alessia Amighini and Claudio Cozza I wrote an article on emerging multinationals investing in Europe. Tito Boeri wrote about this article in Internazionale.
Chinese and Indian M&As in Europe: The relationship between motive and ownership choice
CIRCLE WP, 3, University of Lund, Lund. Forthcoming in The Routledge Companion to Merger and Acquisition; A. Risberg, D. King and O. Meglio (Eds); Routledge, London.
With L. Piscitello and V. Scalera
The present paper is about the ownership choices by Emerging Market Multinational Enterprises (EMNEs) when they invest in Europe through M&As, and the relationship with the main motivations underlying their international expansion. Namely, we claim that EMNEs prefer to acquire less control and keep the local partner when they invest for seeking knowledge. Additionally, EMNEs choose partial acquisitions in case of high dissimilarity in terms of culture, industry and knowledge base.
Our empirical analysis relies on a dataset of M&As undertaken by Chinese and Indian MNEs in high and medium-high tech sectors, in the period 2003-2011. We use content analysis of public announcements and company reports for classifying the main motivation of the acquisitions, and econometric analysis for testing our hypotheses. Our results confirm the expectations.
An analysis of Chinese outward FDIs in Europe with firm-level data
CIRCLE WP, University of Lund, Lund. Forthcoming in China and the World Economy.
With A. Amighini, C. Cozza and M. Sanfilippo
The empirical literature on China’s outward foreign direct investment (OFDI) mainly relies on aggregate data from official statistics, whose international reliability is currently a matter of concern, not taking account some relevant features such as the industry breakdowns, ownership structures and modes of entry. A novel firm-level database – EMENDATA – compiled by matching data from several available sources, on various types of cross-border deals, and including information on group structure, enables new empirical analyses and provides new insights into the rapidly increasing presence of Chinese companies abroad. In this paper, exploring the potential of this database we offer an informative and comprehensive assessment of the geographical and specialization patterns of Chinese outward FDI into Europe and suggest new avenues for further research on this highly policy relevant issue.