IDEAS home Printed from https://ideas.repec.org/p/hal/cepnwp/hal-00154384.html
   My bibliography  Save this paper

How transition led to internationalization?

Author

Listed:
  • Cédric Durand

    (CEPN - Centre d'Economie de l'Université Paris Nord (ancienne affiliation) - UP13 - Université Paris 13 - CNRS - Centre National de la Recherche Scientifique, CEMI - Centre d'étude des modes d'industrialisation - EHESS - École des hautes études en sciences sociales)

Abstract

Since 2002 Russian metallurgical firms have been investing abroad. Taking advantage of the very positive economic climate in the sector, they settle in peripheral as well as in core countries of the world economy. Russia has upgraded from the 50th to the 24th rank between 1995 and 2004 as far as FDI outward flow is concerned [CNUCED, 2005]. Although the Russian FDI stock is still quite limited if compared to other countries, it is five times greater in 2004 than it was in 2000 [BCR, 2005]. The emergence of Russian transnational corporations is a new step in the post-soviet transformation: after the break-up of the old system and a chaotic moment of reorganization, some firms are now building global strategies of growth. This paper addresses this unexpected outcome of the transition process while giving evidence of the trajectory of the metallurgical branch. However, it also focuses on another point. Why do firms internationalize? The scope of the Russian metallurgical shift, its simultaneity and its quickness represent a great opportunity to discuss different hypotheses suggested by the literature and to try to learn from the transition process on that point. This article puts forward an institutional and systemic perspective on multinational corporations. We focus on three kinds of determinants of the internationalization: dynamics of growth based on the resources of the firm, an advantage seeking behavior in order to improve the firm's position in front of its international competitors and a complex interaction vis-a-vis the Russian political power.

Suggested Citation

  • Cédric Durand, 2006. "How transition led to internationalization?," CEPN Working Papers hal-00154384, HAL.
    • Handle: RePEc:hal:cepnwp:hal-00154384
    Note: View the original document on HAL open archive server: https://hal.science/hal-00154384
    as

    Download full text from publisher

    File URL: https://hal.science/hal-00154384/document
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Cédric Durand, 2005. "Les privatisations en Russie et la naissance d'un capitalisme oligarchique," Post-Print hal-00166897, HAL.
    2. Wolf, Bernard M, 1977. "Industrial Diversification and Internationalization: Some Empirical Evidence," Journal of Industrial Economics, Wiley Blackwell, vol. 26(2), pages 177-191, December.
    3. Edward M. Graham, 1978. "Transatlantic Investment by Multinational Firms: A Rivalistic Phenomenon?," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 1(1), pages 82-99, October.
    4. repec:bla:econom:v:38:y:1971:i:149:p:1-27 is not listed on IDEAS
    5. Mortimore, Michael, 2000. "Corporate Strategies for FDI in the Context of Latin America's New Economic Model," World Development, Elsevier, vol. 28(9), pages 1611-1626, September.
    6. Cédric Durand, 2004. "De la prédation à la rente, émergence et stabilisation d'une oligarchie capitaliste dans la métallurgie russe (1991-2002)," Géographie, économie, société, Lavoisier, vol. 6(1), pages 23-42.
    7. Yngve Ramstad, 1996. "Is a Transaction a Transaction?," Journal of Economic Issues, Taylor & Francis Journals, vol. 30(2), pages 413-425, June.
    8. Wladimir Andreff, 2003. "Les multinationales globales," Post-Print halshs-00275225, HAL.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cédric Durand & Marc Lautier, 2013. "Too big, too quick?. An institutional and systemic overview of the rise of Russian metallurgical transnationals," Revue d'économie industrielle, De Boeck Université, vol. 0(2), pages 41-76.
    2. Isabel Faeth, 2009. "Determinants Of Foreign Direct Investment – A Tale Of Nine Theoretical Models," Journal of Economic Surveys, Wiley Blackwell, vol. 23(1), pages 165-196, February.
    3. Belderbos, R.A., 2000. "Foreign investment and international plant configuration : whither the product cycle?," Research Memorandum 003, Maastricht University, Netherlands Institute of Business Organization and Strategy Research (NIBOR).
    4. Ref, Ohad, 2015. "The relationship between product and geographic diversification: A fine-grained analysis of its different patterns," Journal of International Management, Elsevier, vol. 21(2), pages 83-99.
    5. Sanjaya Lall, 1980. "Multinationals and Market Structure in an Open Developing Economy: The Case of Malaysia," Palgrave Macmillan Books, in: The Multinational Corporation, chapter 3, pages 65-90, Palgrave Macmillan.
    6. Hagen, James M., 1997. "Food Processing Firms And Foreign Production Incentives," Working Papers 14314, University of Minnesota, The Food Industry Center.
    7. Qian, Gongming, 1996. "The effect of multinationality measures upon the risk-return performance of US firms," International Business Review, Elsevier, vol. 5(3), pages 247-265, June.
    8. Charis Vlados & Nikolaos Deniozos & Demosthenes Chatzinikolaou & Michail Demertzis, 2018. "Perceiving Competitiveness under the Restructuring Process of Globalization," International Journal of Business and Management, Canadian Center of Science and Education, vol. 13(8), pages 135-135, June.
    9. Peres Núñez, Wilson, 2006. "The slow comeback of industrial policies in Latin America and the Caribbean," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    10. Jamuna Agarwal, 1980. "Determinants of foreign direct investment: A survey," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 116(4), pages 739-773, December.
    11. Narula, Rajneesh. & Marín, Anabel., 2005. "Foreign direct investment spillovers, absorptive capacities and human capital development : evidence from Argentina," ILO Working Papers 993782123402676, International Labour Organization.
    12. Eva Paus & Nola Reinhardt & Michael Robinson, 2003. "Trade liberalization and productivity growth in latin american manufacturing, 1970–98," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 6(2), pages 127-127.
    13. Jean-François Bourg & Jean-Jacques Gouguet, 2010. "The Political Economy of Professional Sport," Books, Edward Elgar Publishing, number 13177.
    14. 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.
    15. Sanjaya Lall, 1986. "Technological development and export performance in LDCs: Leading engineering and chemical firms in India," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 122(1), pages 80-92, March.
    16. Peter J. Buckley, 1993. "Contemporary Theories of International Direct Investment," Revue Économique, Programme National Persée, vol. 44(4), pages 725-736.
    17. Mutinelli, Marco & Piscitello, Lucia, 1997. "Differences in the strategic orientation of Italian MNEs in Central and Eastern Europe. The influence of firm-specific factors," International Business Review, Elsevier, vol. 6(2), pages 185-205, April.
    18. Sherman, Hugh D. & Kashlak, Roger J. & Joshi, Maheshkumar P., 1998. "The effect of the board and executive committee characteristics on the degree of internationalization," Journal of International Management, Elsevier, vol. 4(4), pages 311-335, December.
    19. Nayab Zahra & Danish Ahmed Siddiqui, 2020. "Can Parents be attributed for their Subsidiary Performance?: A Multi-Level Analysis for Performance Determinants of Multinational Enterprises in Pakistan," International Journal of Regional Development, Macrothink Institute, vol. 7(2), pages 1-38, December.
    20. Wladimir Andreff, 2017. "Complexity Triggered by Economic Globalisation— The Issue of On-Line Betting-Related Match Fixing," Post-Print hal-03207049, HAL.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:cepnwp:hal-00154384. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.