IDEAS home Printed from https://ideas.repec.org/p/iwe/workpr/231.html
   My bibliography  Save this paper

Brazilian companies going global - home country push factors of Brazilian multinational enterprises‘ (BMNEs‘) investments, general characteristics and tendencies of their investments in the European, especially East Central European (ECE) region

Author

Listed:
  • Judit Ricz

    (Institute of World Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences)

Abstract

Recently we have seen a fundamental shift in the news regarding Brazilian multinational companies: as long as during the 2000s their successful expansion into global markets was celebrated, today their involvement in the widespread corruption scandal, originating from the kickback scheme (via systematic overpricing of contracts) from Petrobras is on a daily basis in the newspapers. The paper aims to analyse the going global strategy of Brazilian firms, with special emphasis on the home country push factors. After a general panorama on the numbers and main players, we look at the main driving forces behind the international expansion strategy (incl. government policies to support the internationalization of Brazilian MNEs), as well as the various obstacles Brazilian companies have faced on their dumpy road towards the global markets. Then we look at the main destinations of Brazil’s outward FDI, and analyse their localization strategies, with a special focus on the role of Europe (more specifically the Eastern Central European region). We provide some preliminary findings on the Brazilian companies present in the ECE region especially in Hungary), while also try to reveal some region specific driving forces and obstacles that might lie beyond the numbers.

Suggested Citation

  • Judit Ricz, 2017. "Brazilian companies going global - home country push factors of Brazilian multinational enterprises‘ (BMNEs‘) investments, general characteristics and tendencies of their investments in the European, ," IWE Working Papers 231, Institute for World Economics - Centre for Economic and Regional Studies.
    • Handle: RePEc:iwe:workpr:231
    as

    Download full text from publisher

    File URL: https://vgi.krtk.hu/publikacio/no-231-2017-09/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Karl P. Sauvant, 2006. "Inward and Outward FDI and the BRICs," Chapters, in: Subhash C. Jain (ed.), Emerging Economies and the Transformation of International Business, chapter 14, Edward Elgar Publishing.
    2. Rodrik, Dani, 2004. "Industrial Policy for the Twenty-First Century," CEPR Discussion Papers 4767, C.E.P.R. Discussion Papers.
    3. repec:idb:brikps:62498 is not listed on IDEAS
    4. Paulo Resende & André Almeida & Jase Ramsey, 2010. "The Transnationalization of Brazilian Companies: Lessons from the Top Twenty Multinational Enterprises," Palgrave Macmillan Books, in: Karl P. Sauvant & Geraldine McAllister & Wolfgang A. Maschek (ed.), Foreign Direct Investments from Emerging Markets, chapter 0, pages 97-111, Palgrave Macmillan.
    5. Santiso,Javier, 2013. "The Decade of the Multilatinas," Cambridge Books, Cambridge University Press, number 9781107034433, October.
    6. Lourdes Casanova & Andrea Golstein & André Almeida & Matthew Fraser & Ramón Molina & Henning Hoeber & Carlos Arruda, 2009. "Multilatinas to Global Latinas: The New Latin American Multinationals," IDB Publications (Books), Inter-American Development Bank, number 62498, February.
    7. Judit Ricz, 2017. "The Rise and Fall (?) of a New Developmental State in Brazil," Society and Economy, Akadémiai Kiadó, Hungary, vol. 39(1), pages 85-108, March.
    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. Tamas Szigetvari, 2017. "Turkish investments abroad, with a special focus on Central and Eastern Europe," IWE Working Papers 233, Institute for World Economics - Centre for Economic and Regional Studies.
    2. Cuervo-Cazurra, Alvaro, 2016. "Multilatinas as sources of new research insights: The learning and escape drivers of international expansion," Journal of Business Research, Elsevier, vol. 69(6), pages 1963-1972.
    3. Dennis, Allen & Shepherd, Ben, 2007. "Trade costs, barriers to entry, and export diversification in developing countries," Policy Research Working Paper Series 4368, The World Bank.
    4. Shafaeddin, Mehdi, 2010. "Trade liberalization, industrialization and development; experience of recent decades," MPRA Paper 26355, University Library of Munich, Germany.
    5. Inayat U. Mangla & Muslehud Din, 2015. "The Impact of the Macroeconomic Environment on Pakistan’s Manufacturing Sector," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 20(Special E), pages 241-260, September.
    6. Lütkenhorst, Wilfried, 2018. "Creating wealth without labour? Emerging contours of a new techno-economic landscape," IDOS Discussion Papers 11/2018, German Institute of Development and Sustainability (IDOS).
    7. Nathan, Max & Rosso, Anna, 2014. "Mapping information economy businesses with big data: findings from the UK," LSE Research Online Documents on Economics 60615, London School of Economics and Political Science, LSE Library.
    8. Conti, Claudio Ramos & Parente, Ronaldo & de Vasconcelos, Flávio C., 2016. "When distance does not matter: Implications for Latin American multinationals," Journal of Business Research, Elsevier, vol. 69(6), pages 1980-1992.
    9. Vu, Khuong & Hartley, Kris, 2018. "Promoting smart cities in developing countries: Policy insights from Vietnam," Telecommunications Policy, Elsevier, vol. 42(10), pages 845-859.
    10. Ufuk Akcigit & Sina T. Ates & Giammario Impullitti, 2018. "Innovation and Trade Policy in a Globalized World," NBER Working Papers 24543, National Bureau of Economic Research, Inc.
    11. Diogo Ferraz & Fernanda P. S. Falguera & Enzo B. Mariano & Dominik Hartmann, 2021. "Linking Economic Complexity, Diversification, and Industrial Policy with Sustainable Development: A Structured Literature Review," Sustainability, MDPI, vol. 13(3), pages 1-29, January.
    12. Naved Hamid & Maha Khan, 2015. "Pakistan: A Case of Premature Deindustrialization?," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 20(Special E), pages 107-141, September.
    13. Hardik A. Marfatia, 2016. "The Role of Push and Pull Factors in Driving Global Capital Flows," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot GmbH, Berlin, vol. 62(2), pages 117-146.
    14. Frederick van der Ploeg & Steven Poelhekke, 2008. "Globalization and the rise of mega-cities in the developing world," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 1(3), pages 477-501.
    15. Ron Boschma, 2021. "Designing Smart Specialization Policy: relatedness, unrelatedness, or what?," Papers in Evolutionary Economic Geography (PEEG) 2128, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2021.
    16. Elvira Uyarra & Jens Sörvik & Inger Midtkandal, 2014. "Inter-regional Collaboration in Research and Innovation Strategies for Smart Specialisation (RIS3). S3 Working Paper Series no 6/2014," JRC Research Reports JRC91963, Joint Research Centre.
    17. Alfons Palangkaraya, 2013. "On the Relationship between Innovation and Export: The Case of Australian SMEs," Melbourne Institute Working Paper Series wp2013n04, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    18. Ricardo Hausmann & Jason Hwang & Dani Rodrik, 2007. "What you export matters," Journal of Economic Growth, Springer, vol. 12(1), pages 1-25, March.
    19. Tim Kelsall, 2012. "Neo-Patrimonialism, Rent-Seeking and Development: Going with the Grain?," New Political Economy, Taylor & Francis Journals, vol. 17(5), pages 677-682, November.
    20. Tom Broekel & Lars Mewes, 2017. "Analyzing the impact of R&D policy on regional diversification," Papers in Evolutionary Economic Geography (PEEG) 1726, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2017.

    More about this item

    Keywords

    Brazilian multinationals; internationalization strategy; OFDI;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:iwe:workpr:231. 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: Kanász Mária (email available below). General contact details of provider: https://edirc.repec.org/data/vkhashu.html .

    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.