Populism and FDI Location Choice

Markus Liebmann, Thomas Lindner, Vera Kunczer

Research output: Chapter in Book/Report/Conference proceedingConference abstract in proceedingsResearchpeer-review

Abstract

In this study, we investigate how populist governments influence the location choice of multinational enterprises (MNEs) in terms of foreign direct investment (FDI). We also examine how experience of MNEs acts as a contingency in this relationship. With a sample of 525,688 observations on FDIs from 2007 to 2019 we find that MNEs are less likely to invest in a country the more its government is considered populist. More internationally experienced firms that already have invested in the target country and that have experience with populist governments are less deterred from uncertainties of populist governments. Overall, our results highlight the specific uncertainties populist governments cause for MNEs’ location choice and that experienced MNEs can better deal with them.
Original languageEnglish
Title of host publicationProceedings of the 82nd Annual Meeting of the Academy of Management : Creating a Better World Together
EditorsSonia Taneja
Number of pages6
Place of PublicationBriarcliff Manor, NY
PublisherAcademy of Management
Publication date2022
DOIs
Publication statusPublished - 2022
Externally publishedYes
EventThe Academy of Management Annual Meeting 2022: Creating a Better World Together - Seattle, United States
Duration: 5 Aug 20229 Aug 2022
Conference number: 82
https://2022.aom.org/

Conference

ConferenceThe Academy of Management Annual Meeting 2022
Number82
Country/TerritoryUnited States
CitySeattle
Period05/08/202209/08/2022
Internet address
SeriesAcademy of Management Annual Meeting Proceedings
ISSN0065-0668

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