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The relationship of outward foreign direct investment (OFDI) with home country's exports has significant implications for policymakers as well as business managers of MNEs. Since BRICS nations have emerged as important sources as well as destinations of FDI, this paper aims to study the impact of OFDI from these countries on home country exports by using panel data for BRICS for time period 1993–2015.

The author use panel unit root tests, panel cointegration, VECM and causality tests in the study.

The results reveal that OFDI has a negative and significant impact on home country exports indicating that outward FDI is a substitute for exports in these countries. It also indicates long-run causality from exports towards OFDI. There is no long-run causality running from OFDI to exports, suggesting that MNEs do not “connect” with home economies' firms through forward and backward linkages in value chain.

From the point of view of policymakers, it implies a net outflow of capital as the outflow of foreign investment would not be matched by any incremental export earnings since exports are getting substituted by production abroad. For business managers, it is indicative of a growing foreign market that warrants large scale production and justifies the high cost and risk involved in FDI as a mode of entry compared to exports.

To the best of authors' knowledge, this is the first attempt to deal with the relationship between home country exports and OFDI, for an important group of emerging market economies, i.e. BRICS. The understanding of this relationship allow us to identify whether factors contributing to OFDI from emerging economies are “tied” to their home economies thereby making exports necessary or are rather based on firm specific competencies which are leveraged in different locations to cater to expanding markets.

The purpose of this paper is to examine the effects of outward foreign direct investment (O‐FDI) on the competitiveness of home‐country export.

This paper employs a six‐year data set from Taiwanese manufacturing data for 15 industries over the period between 1991 and 2007.

The authors find that exports in Taiwan are positively associated with O‐FDI by Taiwanese firms. This finding supports the view that outward FDI complements home country exports and concurs with the majority of earlier empirical findings which focus on developed home countries. The authors also find that such effect is stronger for Taiwanese FDI in China than in other countries and in traditional sectors than in modern sectors.

These findings suggest that location‐and industry‐specific characteristics moderate the strength of the relationship between O‐FDI and home country exports.

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.

Anchored mainly on the institutional theory and resource-based view, this study endeavors to investigate the interplay between home country institutional environment (economic, regulatory and socio-cultural environment), export market orientation and export performance. Besides, this study also aims to examine the moderating role of firm resources (knowledge-based and managerial resources) in the associations between home country institutions and export market orientation.

Drawing on data from a sample of 221 exporting firms in Turkey, the conceptual model is empirically examined by structural equation modeling.

The findings reveal that regulatory environment is conducive to the improvement of export market orientation, which is instrumental in cultivating export performance. Importantly, empirical evidence also proves that higher levels of knowledge-based and managerial resources strengthen the linkage between home country institutions and export market orientation.

Integrating institutional theory with the resource-based view, this research considerably contributes to the current understanding of the export market orientation phenomenon by filling the knowledge gap on the differential impacts of home country’s economic, regulatory and socio-cultural environment on export market orientation. Moreover, this study provides worthwhile insights into the moderating effect of knowledge-based and managerial resources on home country institutions and export market orientation and the interrelationship between export market orientation and export performance in an emerging economy.

This study investigates how the degree of internationalization (DOI) affects the financial performance of emerging market companies by making the distinction between export intensity and multinationality (i.e. foreign direct investment). The authors argue that the different DOI-performance patterns in the literature relate to different internationalization approaches, which are moderated in distinct ways by formal institutions in the home country.

Based on data of Brazilian firms in several industries and with different internationalization patterns including 100 exporting firms and 30 multinational companies with varying degrees of multinationality over a period of five consecutive years, the authors test their hypotheses using an unbalanced panel data with 346 firm-year observations. In order to test how the quality of formal institutions moderate the DOI-performance relationships, the authors estimate the changes in the slope of the regression line by adding and subtracting one standard deviation to the Worldwide Governance Indicators (WGI) variables.

A positive and linear association between export intensity-performance (EI-P) highlights the location specific comparative advantages of exporting Brazilian firms, while the multinationality-performance (M-P) relationship points to a horizontal S-shape pattern which conforms to the theoretical assumptions of the three-stage internationalization process. Formal institutions moderate positively the EI-P relationship, but moderate negatively each of the three stages of the M-P relationship.

The findings from this study provide critical insights that contribute to the ongoing debate on how formal institutions in the home country affect the DOI-performance relationship of emerging market companies (EMCs). However, the authors consider that it has limitations as they focused exclusively on formal institutions captured by governance institutions in the Brazilian context.

This study provides relevant insights to managers and policy makers. Findings reveal that strong formal institutions in the home country make it easier (cheaper) for EMCs to invest abroad, and, at the same time, increase the efficiency of exporting firms and positively influence financial performance. Moreover, results show that during downturns in their domestic markets, multinational EMCs outperform domestic firms. In that sense, while policy makers can promote the internationalization and competitiveness of EMCs by implementing more supportive formal institutions, managers should consider a proactive approach and invest abroad when conditions in the home country are favorable.

By making the distinction between export intensity and multinationality this study contributes to the literature on the DOI-performance of EMCs providing a more nuanced view on how formal institutions in the home country moderate the EI-P and M-P relationships in different ways.

This study aims to examine the effects of outward foreign direct investment (OFDI) on the home country exports for selected ASEAN countries during 1981-2013.

The authors have used OLS regression based on the unit root analysis, correlation technique and a series of specification tests applied to annual time series data.

The results reveal that the complementary effects of OFDI on exports of the home country outweigh the substitution effects for four ASEAN countries. Furthermore, trade openness, currency fluctuations and inward foreign direct investment (FDI) are also important factors for progressive home country exports.

This study provides a thorough analysis of the links between OFDI and exports of the home country on a macro level. With a data set of more than three decades from the ASEAN region, this study is the first attempt of its kind to analyze the relationship of these two variables on the aggregate level.

Outward foreign direct investment (OFDI) and its relationship with exports of home country is an important aspect of internationalization having implications for both policymakers and multinational enterprises (MNEs). This paper aims to examine this relationship by using panel data for ten major emerging countries from Asia over the period 1991-2012.

The authors use panel vector auto regression, panel cointegration and causality tests in this study.

The authors find evidence of long-run causality from exports to OFDI. Further, exports and OFDI are found to be substitutes. There is no long-run causality from OFDI to exports, implying that MNEs are not “connecting” with home country firms through backward and forward linkages in the production process.

To the best of the authors’ knowledge, this is the first paper to deal with the relationship of OFDI with exports of the home country, for a group of developing/emerging countries.

Analyses the influence of export share and domestic content policies on the level of capital investment undertaken by a multinational firm both in its home country and in the foreign country in which it operates. These protective policies, in force in both developing and industrialized countries, require the firm to employ a certain proportion of inputs from the foreign country in which it operates and to export a certain proportion of its output abroad. Cases examined in the analysis include those for which the firm faces uncertainty in the production process in the host and home countries; and in neither country. Finds that both of these policies can have spillover effects to the home country as well, i.e. when there is uncertainty in production in the home country, these policies can reduce the optimal level of investment in the home country, too.

The paper aims to examine the effects of outward foreign direct investment (O‐FDI) on home‐country productivity.

A panel data set for 15 Taiwanese manufacturing industries over the period between 1991 and 2007 is employed for a model in which productivity is regressed on a measure of O‐FDI.

The study finds no significant positive or negative effect of O‐FDI on productivity. Breaking down the data by location of the investment, however, we find that O‐FDI in other countries enhances productivity in Taiwan, while O‐FDI in China does not. We interpret the positive role of O‐FDI in other countries as relating to the outcome of strategic asset‐seeking nature of Taiwanese investments in these countries.

In order to analyse the productivity effect of O‐FDI more precisely, one would need to compare the firm outcomes in the presence of multinational production with the outcomes that would have prevailed in the absence of multinational production. Unfortunately, we cannot observe what would have happened to firms that did engage in multinational production had they not done so.

The findings suggest that the Taiwanese Government should distinguish the level of liberalization towards O‐FDI for different locations and in different types of industries. In particular, the government should channel more investment towards export‐oriented industries especially those in “other countries”.

The paper employs a contingency approach, examining the conditions under which O‐FDI impacts upon home productivity.

This chapter examines the role of immigrant networks on trade, particulalry through the demand effect. First, we examine the effect of immigration on trade when the immigrants consume more of the good that is abundant in their home country than the natives in a standard Heckscher–Ohlin model and find that the effect of immigration on trade is a priori indeterminate. Our econometric gravity model consisting of 63 major trading and immigrant-sending country for the United States over 1991–2000. We find that the immigrants income, mostly through demand effect has a significant negative effect on U.S. imports. However, if we include the effect of the immigrant income interacted with the size of the immigrant network, measured by the immigrant stock, we find that higher immigrants income lowers the immigrant network effect for both U.S. exports and imports. This we find in addition to the immigrants stock elasticity of 0.27% for U.S. exports and 0.48% for U.S. imports. Capturing the immigrant assimilation with the level of immigrant income and the size of the immigrant enclave this chapter finds that the immigrant network effect on trade flows is weakened by the increasing level of immigrant assimilation.