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The main aim of this paper is to verify whether the modern mainstream economic theory of multinational enterprise that explains foreign direct investment (FDI) from developed countries is also able to account for investment decisions of multinational enterprises (MNEs) from emerging economies.

Using Knowledge-And-Physical-Capital (KAPC) model as an analytical framework and Poisson-pseudo maximum likelihood estimation technique, the authors identify determinants of FDI flows from emerging economies. The data set consists of 38 home and 134 host countries during the period 2000–2012. Empirical evidence supports high explanatory power of KAPC model. Further, compared with the earlier Knowledge-Capital (KC) model, results confirm the importance of physical capital.

The estimation results confirm the hypothesis that mainstream economic theory can explain FDI flows from the emerging economies by highlighting the roles of total market size, skilled-labor abundance, investment and trade costs and geographical distance between two countries.

This study casts doubt on the alternative way that the KAPC model suggests to distinguish between horizontal and vertical FDI. The argument that horizontal MNE headquarters would be relatively more abundant than vertical MNE headquarters in countries that are abundant in physical capital relative to skilled labor seems reasonable but the idea of variable specification in the estimated equation should be revised.

Firms should be allowed to move their resources freely into and out of specific activities, both internally and internationally across border. To reach that goal, governments of potential host countries can adopt several measures, most importantly remove restrictions on payments, transfers and capital transactions and open previously closed industries to welcome foreign investment. In addition, to improve investment climate in general, governments need to pay attention to enhancing security of property rights, regulating internal taxation (i.e. corporate income tax), guaranteeing adequacy of infrastructure, efficient functioning of finance and labor markets and fighting against corruption.

The location choice of emerging investors set priority on similarity in economic size, geographical and cultural proximity. It is because shared borders or common official languages would reduce information costs and enhance information flows. Also, investors consider horizontal FDI (with motivation to expand market demand) as one of main modes of entry into a foreign market and a substitute for export. Likewise, distance is often understood as an important investment friction.

The outstanding contribution is that the research has uncovered the positive and statistically significant effect of physical capital on FDI activity, which has not been discussed in the earlier KC model. However, at the same time, the study casts doubt on the KAPC model's argument that relative abundance in physical capital to skilled labor between two countries determines FDI types and suggests that this argument and its empirical model specification should be carefully reviewed.

This chapter examines the role of formal and informal institutions in foreign direct investment (FDI) dynamics.

We examine the effects of the quality of legal, political, and economic formal institution as well as the effect of institutional distance (based on new dataset) on bilateral inward FDI stocks in 34 Organization for Economic Cooperation and Development countries for the period 1990–2010 using a gravity specification. Additionally, we also examine FDI for the effects of a specific informal institution – attitude of the public toward economic liberal issues. Reactions of FDI to liberal and nonliberal public opinion (part of informal institutions) are examined with and without controlling for formal institutions.

Findings show that the quality of legal and political institutions are important determinants of FDI, that legal and political institutional distance are both significant obstacles to FDI, and that public opinion also matters. We find that it is important to control for formal institutions when looking at the effect of informal institutions, and that both past liberal and nonliberal public opinion correlate with FDI, but only nonliberal public opinion significantly reduces inward FDI directly.

Results are relevant for enterprises’ investment strategies, marketing strategies influencing public opinion as well as for policy makers, and governmental agencies involved in investment promotion programs.

Exploring the interplay between formal and informal institutions, institutional quality, institutional distance, and their effect on FDI in a bilateral panel.

The purpose of this study is to identify, based on social network theory, the relationship between the direction of international migration (immigration/emigration) and the international movement of enterprises and their location.

A traditional gravity model and the Tobit estimation method are applied to three groups of countries from three different regions: Latin America, North America and the European Union. The study considers a period from 2001 to 2012.

The main results suggest that the international migration that goes from the European Union and North America to Latin America is related with the firms’ internationalization and their respective location.

Given that migration can be an important and reliable source of information, trust and knowledge, managers should see it as a “bridge” between the home and host countries, which, in turn, can increase their competitive advantage.

Governments can learn how migration and outward foreign direct investment interact. In addition, they could develop political frameworks to accurately and effectively manage international migration (immigration and emigration) and FDI in the best interests of the stakeholders.

This study extends the social network theory by suggesting that networks are not only related with firms’ expansion abroad but as well with their location. This statement could be generalizable as long as emigration/networks (ethnic ties) are considered the links between the home and the host country.

This paper aims to investigate the determinants of international bilateral tourism demand in countries of Southern Common Market (specifically, Argentina, Brazil and Uruguay) and Chile.

In this study, an augmented gravity model is used to investigate the determinants of international bilateral tourism demand in countries of Southern Common Market. The novel aspect of the analysis is that three models of tourism are defined, depending on the spatial distribution of tourist arrivals and departures. An intra-regional model, an extra-regional model and a general model are estimated using a dynamic panel data model.

The results indicate that traditional gravity variables are significant in explaining bilateral inbound arrivals, but the characteristics and the behavior of the demand of tourism vary on whether the country belongs to the sub-regional bloc.

The differences found in this paper might have some impacts on the desired design and direction of the touristic policies of each country.

This study analyzes the determinants of international tourism demand through different bilateral relationships, differentiating between intra- and extra-block tourisms.

This paper presents insights on expatriates in Africa and sets out a research agenda for Africa’s expatriation. The objective of the paper is to provide background and context on expatriation in Africa and to stimulate and guide further research in this important area.

The reviewed papers were drawn from journals and other sources that reported on expatriation to/from African countries. It also incorporates an array of literature on contextual African issues, exploring conceptually how these relate to expatriation.

The review confirmed that there is little research on the topic, particularly with respect to outward expatriation and the studies that exist are one of a kind and stand alone. There has been no attempt to build systematic theory or develop a wholistic picture. This means that the field is wide open for more research. The data provide a picture of the current expatriate situation, including numbers, demographics, host/home locations, success rates and so on, and are provide a basis for further research developing and testing hypotheses regarding individual, organizational and country/national characteristics and how these influence and relate to expatriate experiences and outcomes. Researchers can also draw on the existing expatriation literature from around the world for replication studies to identify uniquely African issues as well as similarities with other locations. As Selmer (2016) noted, replication research is widely used in the sciences and is at the core of the scientific method and thus should be considered for expatriation research.

Limited previous research means there is a need for further research.

Expatriation is a critical aspect of companies operating internationally and companies are increasingly interested in doing business in African countries. Africa's economic growth and development are strong and foreign direct investment (FDI) into Africa is growing with consequent increases in the number of expatriates going to Africa. Understanding expatriation in the African context is thus very important to a variety of companies.

Management literature focusing on Africa is limited and this is true regarding expatriation. This means there is a need for researchers and practitioners to understand expatriation issues in this context, particularly considering economic growth on the continent, increasing interest in doing business there, along with increasing FDI and use of expatriates, as well as the expansion of African companies. This paper provides a research agenda as a guide on which researchers, including those in Africa, can build.

Office markets and particularly international financial centres over the past decade have experienced rapid financialisation, developments and indeed changes in the post-global financial crisis (GFC) landscape. Importantly, the volume and types of international capital flows have witnessed more foreign actors and vehicles entering into the investment landscape with the concentration of investment intensifying within key financial centres. This paper examines the interaction of international real estate capital flows in the London, New York and Tokyo office markets between 2007 and 2017.

Using Real Capital Analytics (RCA) data comprising over 5,700 office property transactions equating to $563bn between 2007 and 2017, the direct global capital flows into the London, New York and Tokyo office markets are assessed using an autoregressive distributed lag (ARDL) approach. Further, Granger causality tests are examined to analyse the short-run interaction of international real estate capital flows into these three major office markets.

By assessing the relativity of internal to external investments in these three central business district (CBD) office markets, differences in market dynamics are highlighted. The London office market is shown to be highly dependent on international flows and the USA, the foremost source of cross-border investment on the global stage. The cointegration and causality analysis indicate that cross-border real estate investment flows in these markets (and financial centres) show both long- and short-run relationships and suggest that the London office market remains more distinct and the most reliant on international capital flows with a wider geographical spread of investment activities and investor types. In the case of New York and Tokyo, these markets appear to be driven by more domestic investment activity and capital seemingly due to subtle factors pertaining to investor home bias, risk aversion and diversification strategies between the markets in the aftermath of the GFC.

Given the importance of the CBD offices in London, New York and Tokyo as an asset class for institutional investors, this paper provides some insights as to their level of connection and the interaction of the international capital flows into these three major cities.

This paper aims to focus on the trade effects of outward direct investment in developing countries.

To illustrate the effects, the author analyses it from the efficiency of resource utilization, technological advancement and transaction costs, respectively.

The author concludes that OFDI has a positive effect on trade development in developing countries.

Studying the interactions between FDI and trade, the traditional perspective that the investment can only lead to changes in capital endowment in a country is not perfect. These theories were mainly created and founded in developed countries and aimed only to explain their direct investment behavior. If the perspective is shifted to developing countries, it is found that the effect of FDI not only changes the supply-demand relationship of monetary capital, but also significantly influences division of labor and trade through the change in knowledge-oriented factors. Therefore, incorporating international direct investment as a new variable into contemporary international trade theories will enrich the existing theories, and also be beneficial for the development of integration theory of investment and trade.

Numerous articles contain recommendations as to how emerging countries can attract foreign direct investment on terms that are beneficial to both the investing firm and the host society but very few explore the conditions for firms from emerging countries to invest abroad. The purpose of this paper is twofold: the first is the documentation of the preferred locations of foreign affiliates for the largest financial groups headquartered in emerging countries; and, second, is to identify some of the determinants associated with the location-specific advantages of these host countries.

The analysis of the internationalization process of these groups is based on a list of top financial groups ranked by total assets. In the empirical section, the factors that explain the choice of these locations by multinational firms are categorized as resources seeking, market seeking, efficiency-seeking variables and cultural variables.

There is empirical evidence that institutions prefer to invest in foreign locations that minimize some dimensions of the culture. Other factors like the role of efficiency variables, i.e. trade efficiency, political risk and government effectiveness, in host countries also have a strong impact on the determinants of the internationalization process.

The paper puts forward a framework for analyzing determinants of foreign direct investment of multinational financial groups from emerging economies.

This study examines whether education in developing countries directly impacts their foreign income from the top export sector.

As most developing countries follow developed nations to shape their development, this study assumes developing countries as education-follower and developed countries as education-leader countries. Considering selected countries from the South Asian Regional Cooperation (SAARC) and African countries as follower countries and Group of Seven (G7) as leader countries, this study employs Dumitrescu-Hurlin Granger non-causality tests.

This study finds that education-follower countries' achievements do not directly impact foreign earnings from their leading export sectors. However, findings also confirm that leader countries have a bidirectional causal relationship between tertiary education and earnings from high technology exports.

To the best of the authors' knowledge, this is the first study urging research-intensive education with comparative advantages in international trade. Using educational attainment on export earnings from the leading sector, findings support dependency theory in education is still existed.

What is the effect of an increase of migration inflows on the R&D and innovative performance of developing countries? The purpose of this paper is to investigate the impact of migration inflows on the R&D and innovation activity (measured as expenditures on R&D and technological innovations) in Russian regions.

To this end, the authors use data on 85 Russian regions for the period 2010-2016 through a multi-region economic geography model. In particular, the authors test the hypothesis about the importance of migration inflows on R&D and technological innovation activity (H1) and the hypothesis about the importance of immigrants’ (incoming migrants) human capital (measured by the education level of incoming migrants) on R&D and innovation activity (H2).

Empirical findings support the evidence in favour of a positive causal link between innovation and migration inflows. Results of our investigation are important because they suggest useful insights for formulating science and innovation policies in Russia, which is a developing country where the recent policies favouring the technological innovation as the transition period have not yet achieved a satisfying outcome.

This paper increases the knowledge in the field with respect to the existing literature, shedding further light on the migration inflows effects, which is a political topic to manage very relevant in all countries.