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Unconventional foreign direct investment and the imbalance theory

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  • Moon, Hwy-Chang
  • Roehl, Thomas W.

Abstract

We have observed an increasing number of foreign direct investments (FDI) from less developed countries, and by firms that are not the strongest competitors in their markets. This increase in the variety of investments is a challenge for existing theories of FDI based on ownership-specific advantages that give a firm an advantage in foreign markets. By introducing the idea of imbalance, as opposed to advantage, as the source of FDI, we allow for a theoretical basis for analyzing FDI. This concept effectively deals with the variety of FDI while remaining consistent with the traditional explanations for more conventional FDI cases.

Suggested Citation

  • Moon, Hwy-Chang & Roehl, Thomas W., 2001. "Unconventional foreign direct investment and the imbalance theory," International Business Review, Elsevier, vol. 10(2), pages 197-215, April.
    • Handle: RePEc:eee:iburev:v:10:y:2001:i:2:p:197-215
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