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ODI from BRIC Countries: A Conceptual Framework

  • Valeria Gattai
  • Rajssa Mechelli
  • Piergiovanna Natale
Chapter

Abstract

In this chapter, we review the literature on the internationalization-performance nexus according to the International Economics perspective. The seminal contribution of Bernard and Jensen (1995) drew researchers’ attention to the relationship between exposure to international markets and firm performance. Regardless of the year and the country of analysis, internationalized firms turn out to be “the happy few”, that is, they are the minority, but they outperform domestic enterprises. With the aim of providing a conceptual framework to Outward Direct Investment (ODI) from Brazil, Russia, India, and China (BRIC), we consider the theoretical contributions on self-selection and learning-by-internationalization, and we present the related empirical evidence. Theoretical models and econometric analyses are described in a non-technical manner, without scarifying exhaustiveness for simplicity. Particular emphasis is laid on comparing the previous contributions and identifying the main gaps in the ODI literature. This is key to introducing the novelties of our approach, which are stressed throughout the chapter. References to the International Business literature on ODI and firm-level performance are provided, for sake of completeness. Reading this chapter is essential to frame our empirical exercise because it lays down the theoretical foundations of the regression analysis developed elsewhere in the book.

Keywords

Firm performance Heterogeneous firms FDI literature ODI literature Self-selection Learning-by-internationalization 

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Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Valeria Gattai
    • 1
  • Rajssa Mechelli
    • 2
  • Piergiovanna Natale
    • 1
  1. 1.University of Milano-BicoccaMilanItaly
  2. 2.Catholic University of the Sacred HeartMilanItaly

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