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FDI in the EU Periphery: A Multinomial Logit Analysis of Greek Firm Strategies

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  • Helen Louri
  • Marina Papanastassiou
  • John Lantouris

Abstract

LOURI H., PAPANASTASSIOU M. and LANTOURIS J. (2000) FDI in the EU periphery: a multinomial logit analysis of Greek firm strategies, Reg. Studies 34 , 419-427. Outward FDI is a recent activity of Greek firms. It is mostly directed towards the Balkan countries and forms an alternative strategy to exports. An analysis of the decision-making process of Greek firms before undertaking any type of internationalization strategy is attempted using a multinomial logit model on firm-level data. Borrowing capacity, labour intensity, sales growth rate, relative firm size and acquired familiarity with foreign markets contribute to the strategic decision of investing abroad. LOURI H., PAPANASTASSIOU M. et LANTOURIS J. (2000) L'investissement direct etranger a la peripherie de l'Ue: une analyse du type multinomial logit des strategies des entreprises grecques, Reg. Studies 34 , 419-427. L'investissement direct grecque a l'etranger est un phenomene assez recent. En regle generale, de tels investissements sont orientes vers les Balkans et representent une strategie alternative a l'exportation. A partir d'un modele du type multinomial logit base sur des donnees aupres des entreprises, on cherche a analyser le processus decisionnel des entreprises grecques avant qu'elles adoptent aucune strategie d'internationalisation. Les variables suivantes contribuent a la prise de decision strategique quant a l'investissement a l'etranger: acces a l'emprunt, importance de la main-d'oeuvre, taux de croissance des chiffres d'affaires, taille critique et connaissances acquises des marches exterieurs. LOURI H., P APANASTASSIOU M. und LANTOURIS J. (2000) Investierungen im Ausland von der Peripherie der Europaischen Union aus gesehen: eine multinationale Logitanalyse griechischer Firmenstrategien, Reg. Studies 34 , 419-427. Ins Ausland gerichtete Direktinvestierungen zahlen zu den Geschaftsaktivitaten, in die griechische Firmen erst vor kurzem eingestiegen sind. Sie wendet sich vor allem an die Balkanlander und stellt eine alternative Strategie zum Export dar. Es wird eine Analyse der Beschlusse fassenden Vorgange in griechischen Firmen unternommen, die jeglicher Art internationalisierender Strategie vorausgeht, wobei ein multinominales, sich auf Daten auf Firmenebene stutzendes Logitmodel benutzt wird. Kreditfahigkeit, Arbeitsintensitat, Zuwachsrate von Verkaufen, relative Firmengrosse und erworbenes Vertrautsein mit dem auslandsmarkt tragen zum strategischen Beschluss bei, im Ausland zu investieren.

Suggested Citation

  • Helen Louri & Marina Papanastassiou & John Lantouris, 2000. "FDI in the EU Periphery: A Multinomial Logit Analysis of Greek Firm Strategies," Regional Studies, Taylor & Francis Journals, vol. 34(5), pages 419-427.
    • Handle: RePEc:taf:regstd:v:34:y:2000:i:5:p:419-427
    DOI: 10.1080/00343400050058675
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    1. Dimitris Giakoulas & Constantina Kottaridi, 2020. "Internationalization Strategies of the Greek MNEs during the Pre-Crisis Period: An Econometric Research Based on the OLI Model," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 70(1-2), pages 128-150, January-J.
    2. Ron Boschma & Simona Iammarino & Raffaele Paci & Jordy Suriñach & Andrea Ascani & Riccardo Crescenzi & Simona Iammarino, 2017. "The Geography of Foreign Investments in the EU Neighbourhood," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 108(1), pages 76-91, February.
    3. Theodore Metaxas, 2011. "Regional Investments in Southern European Cities," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 61(1-2), pages 55-79, January -.
    4. Metaxas, Theodore, 2010. "Investment images in Southern Europe: an appreciation of firms in four Southern European cities," MPRA Paper 41023, University Library of Munich, Germany, revised 2010.
    5. George Nakos & Keith D. Brouthers, 2002. "Entry Mode Choice of SMEs in Central and Eastern Europe," Entrepreneurship Theory and Practice, , vol. 27(1), pages 47-63, January.
    6. Louri-Dendrinou, Eleni & Fotopoulos, Georgios, 2002. "Corporate Growth and FDI: Are Multinationals Stimulating Local Industrial Development?," CEPR Discussion Papers 3128, C.E.P.R. Discussion Papers.
    7. Agnieszka Chidlow & Stephen Young, 2008. "Regional Determinants of FDI Distribution in Poland," William Davidson Institute Working Papers Series wp943, William Davidson Institute at the University of Michigan.
    8. Cristina Sacala & Aniela Raluca Danciu & Vasile Alecsandru Strat, 2016. "Patterns of Foreign Direct Investment in Transylvania," Romanian Statistical Review, Romanian Statistical Review, vol. 64(1), pages 52-68, March.
    9. Vassilis Monastiriotis & Achilleas Tsamis, 2007. "Greece’s new Balkan Economic Relations: policy shifts but no structural change," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 01, Hellenic Observatory, LSE.
    10. Montserrat Álvarez, 2003. "FDI Determinant Factors: The Case of Catalan Multinational Manufacturing Firms," Working Papers 2003/4, Institut d'Economia de Barcelona (IEB).
    11. Georgios Fotopoulos & Helen Louri, 2004. "Firm Growth and FDI: Are Multinationals Stimulating Local Industrial Development?," Journal of Industry, Competition and Trade, Springer, vol. 4(3), pages 163-189, September.
    12. Chidlow, Agnieszka & Salciuviene, Laura & Young, Stephen, 2009. "Regional determinants of inward FDI distribution in Poland," International Business Review, Elsevier, vol. 18(2), pages 119-133, April.

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