The Co-Evolution of Pro-Market Reforms and Emerging Market Multinationals

Emerging Economies and Multinational Enterprises

ISBN: 978-1-78441-740-6, eISBN: 978-1-78441-739-0

ISSN: 1571-5027

Publication date: 24 June 2015

Abstract

I study the relationship between pro-market reforms and the expansion of emerging market multinational companies (EMNCs). Extending institutional economics, I propose a co-evolutionary process, whereby pro-market reforms in emerging markets induce the transformation of domestic firms into EMNCs, and the global expansion of EMNCs in turn facilitates the deepening of pro-market reforms in the home country. Specifically, I first explain how pro-market reforms lead to the emergence of EMNCs via international competitiveness, upgrading needs, and escape; I then explain how the global expansion of EMNCs leads to a deepening of pro-market reforms at home via learning, spillovers, and lobbying. I complement these explanations with a discussion of contingencies at the firm (private vs. state, domestic vs. foreign firms), industry (global vs. local industries), and country (developing vs. transition countries) levels.

Keywords

Citation

Alvaro Cuervo-Cazurra (2015). 'The Co-Evolution of Pro-Market Reforms and Emerging Market Multinationals', Emerging Economies and Multinational Enterprises (Advances in International Management, Volume 28). Emerald Group Publishing Limited, pp. 71-94

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DOI

: https://doi.org/10.1108/S1571-502720150000028007

Publisher

:

Emerald Group Publishing Limited

Copyright © 2015 Emerald Group Publishing Limited

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