Cross-national distance impact on FDI strategic decisions into Portugal: Evidence from Eurozone and Ibero-America

Marcelo Pereira Duarte; Fernando Manuel Pereira de Oliveira Carvalho

doi:10.5585/riae.v18i4.10971

Authors

Marcelo Pereira Duarte University of Coimbra, Faculty of Economics https://orcid.org/0000-0002-3754-8147
Fernando Manuel Pereira de Oliveira Carvalho CeBER - Center for Business and Economics Research (University of Coimbra, Faculty of Economics) http://orcid.org/0000-0002-8527-3790

DOI:

https://doi.org/10.5585/riae.v18i4.10971

Keywords:

Cross-national distance, Eurozone, FDI, Ibero-America, Portugal

Abstract

Purpose: The purpose of this paper is to assess if MNEs from the Eurozone and Ibero-America have different sensitivities to cross-national distance when investing in Portugal, by comparison with non-Eurozone and non Ibero-American MNEs.

Methodology: Using qualitative variables on a panel data analysis, we are able to assess the differentiated effects of cross-national distance on MNEs from members and non-members of both groups of countries.

Findings: Results suggest that sensitivities are indeed differentiated, with a notable exception of administrative distance which remains with a negative effect throughout all groups.

Originality: This research contributes to international business/management literature in the extent that it explores the relationship between cross-national distance and one of the most important international strategic decisions, FDI. It also addresses Portugal’s monetary integration in the Eurozone and the historic and cultural ties with Ibero-American countries.

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Author Biographies

Marcelo Pereira Duarte, University of Coimbra, Faculty of Economics

Master in Management by Faculdade de Economia, Universidade de Coimbra. PhD Student / Invited Professor in Faculdade de Economia, Universidade de Coimbra.

Fernando Manuel Pereira de Oliveira Carvalho, CeBER - Center for Business and Economics Research (University of Coimbra, Faculty of Economics)

PhD in Ciencies Economiques i Empresarials by Facultat de Ciêncies Econòmiques i Empresarials, Universitat de Barcelona. Professor in Faculdade de Economia, Universidade de Coimbra.

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