Template-type: ReDIF-Paper 1.0
Author-Name: Carvalho, Flavia
Author-Email: carvalho@merit.unu.edu
Author-Workplace-Name: UNU-MERIT, Maastricht University
Author-Name: Duysters, Geert
Author-Email: duysters@merit.unu.edu
Author-Workplace-Name: UNU-MERIT, Maastricht University, and Eindhoven University
	 of Technology
Author-Name: Costa, Ionara
Author-Email: costa@merit.unu.edu
Author-Workplace-Name: UNU-MERIT, Maastricht University
Title: Drivers of Brazilian foreign investments – technology seeking and technology 
	 exploiting as determinants of emerging FDI 
Abstract: The paper uses data from a recent survey on Brazilian firms to 
	 investigate the role of technology in the internationalization of firms, 
	 and whether if affects the destination of foreign investments. Emerging 
	 markets FDI is a much-debated topic these days, and their 
	 technology-seeking purpose is a strong driver for the 
	 internationalization, as firms are searching for assets in order to 
	 compete. We apply a logit model to seek for the influence of 
	 determinants and some firms’ competitive advantages on the choice for 
	 developed countries as a destination for Brazilian FDI. We also test 
	 which modes of entry are preferred when investing in a developed 
	 destination. Our results point out the importance of a skilled labor 
	 force on the decisions to invest in developed destinations. We found out 
	 that technology is an asset used as a competitive resource, and that 
	 Brazilian firms do not undertake technology-seeking investments in 
	 developed countries, and that acquisitions and Greenfield investments 
	 are the main modes of entry.
Classification-JEL: F21, F23, O33
Keywords: foreign direct investments, emerging markets, technology, innovation,
	 competitive advantages, multinational corporations
Series: UNU-MERIT Working Papers
Creation-Date: 2010
Number: 017
File-URL: http://www.merit.unu.edu/publications/wppdf/2010/wp2010-017.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2010017