Corporate Internationalization: The effects of the exchange rate on Brazilian outward foreign direct investment

Detalhes bibliográficos
Autor(a) principal: Turolla, Frederico
Data de Publicação: 2008
Outros Autores: Concer, Ronald de Oliveira
Tipo de documento: Artigo
Idioma: eng
por
Título da fonte: BBR. Brazilian Business Review (English edition. Online)
Texto Completo: http://www.bbronline.com.br/index.php/bbr/article/view/449
Resumo: This paper presents a quantitative analysis of corporate internationalization in Brazil and tests the hypothesis that the country’s strengthening currency prompted companies to expand abroad. We start with a review of the literature on the main international business approaches and theories, aiming to present the drivers behind the behavior of firms that have followed an internationalization path. We worked with the variables Exchange Rate (FX) and Brazilian Foreign Direct Investment (BFDI). We carried out Granger causality tests using the mentioned variables and found no evidence of the importance of the FX factor as a driver of corporate internationalization in Brazil. We also performed a regression analysis, which showed low significance of the FX variable’s coefficient in explaining BFDI as well. Thus, although the strong exchange rate in Brazil is often blamed for forcing companies to look abroad for investment opportunities, the evidence found in the aggregate data does not validate the initial hypothesis.
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spelling Corporate Internationalization: The effects of the exchange rate on Brazilian outward foreign direct investmentInternacionalização de Empresas: os Efeitos da Taxa de Câmbio sobre o Investimento Direto Brasileiro no Exteriorinternational businessBrazilian foreign direct investmentexchange ratecorporate internationalizationnegócios internacionaisinvestimento direto brasileirotaxa de câmbiointernacionalização de empresasThis paper presents a quantitative analysis of corporate internationalization in Brazil and tests the hypothesis that the country’s strengthening currency prompted companies to expand abroad. We start with a review of the literature on the main international business approaches and theories, aiming to present the drivers behind the behavior of firms that have followed an internationalization path. We worked with the variables Exchange Rate (FX) and Brazilian Foreign Direct Investment (BFDI). We carried out Granger causality tests using the mentioned variables and found no evidence of the importance of the FX factor as a driver of corporate internationalization in Brazil. We also performed a regression analysis, which showed low significance of the FX variable’s coefficient in explaining BFDI as well. Thus, although the strong exchange rate in Brazil is often blamed for forcing companies to look abroad for investment opportunities, the evidence found in the aggregate data does not validate the initial hypothesis.Este trabalho realiza uma análise quantitativa sobre a internacionalização de empresas, testando a hipótese de que a taxa de câmbio apreciada seria um fator que de expulsão de empresas, levando à sua internacionalização. A partir da revisão da literatura referente às principais abordagens e teorias de Negócios Internacionais, pretendeu-se apresentar fatores que expliquem o comportamento das empresas inseridas no processo de internacionalização, trabalhando com as variáveis Foreign Exchange (FX) e o investimento direto brasileiro no exterior (IBD). Foram realizados testes de causalidade de Granger, usando as variáveis citadas, o que resultou na não evidência da importância do fator cambial como vetor para o processo de internacionalização. Da mesma forma, a análise de regressão revelou uma baixa significância da variável FX como explicativa da variável IBD. Assim, embora a taxa de câmbio seja freqüentemente citada, em particular nos momentos de apreciação, como fator de expulsão de empresas, a evidência dos dados agregados não corrobora com esta hipótese.FUCAPE Business Shool2008-01-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionPeer-reviewed ArticleArtigo revisado pelos paresapplication/pdfapplication/pdfhttp://www.bbronline.com.br/index.php/bbr/article/view/44910.15728/bbr.2008.5.1.3Brazilian Business Review; Vol. 5 No. 1 (2008): January to April 2008; 35-48Brazilian Business Review; v. 5 n. 1 (2008): Janeiro a Abril de 2008; 35-481808-23861807-734Xreponame:BBR. Brazilian Business Review (English edition. Online)instname:Fucape Business School (FBS)instacron:FBSengporhttp://www.bbronline.com.br/index.php/bbr/article/view/449/680http://www.bbronline.com.br/index.php/bbr/article/view/449/681Copyright (c) 2008 Brazilian Business Reviewhttps://creativecommons.org/licenses/by/4.0info:eu-repo/semantics/openAccessTurolla, FredericoConcer, Ronald de Oliveira2018-11-06T19:59:09Zoai:ojs.pkp.sfu.ca:article/449Revistahttps://www.bbronline.com.br/index.php/bbr/indexONGhttp://www.bbronline.com.br/index.php/bbr/oai|| bbronline@bbronline.com.br1808-23861808-2386opendoar:2018-11-06T19:59:09BBR. Brazilian Business Review (English edition. Online) - Fucape Business School (FBS)false
dc.title.none.fl_str_mv Corporate Internationalization: The effects of the exchange rate on Brazilian outward foreign direct investment
Internacionalização de Empresas: os Efeitos da Taxa de Câmbio sobre o Investimento Direto Brasileiro no Exterior
title Corporate Internationalization: The effects of the exchange rate on Brazilian outward foreign direct investment
spellingShingle Corporate Internationalization: The effects of the exchange rate on Brazilian outward foreign direct investment
Turolla, Frederico
international business
Brazilian foreign direct investment
exchange rate
corporate internationalization
negócios internacionais
investimento direto brasileiro
taxa de câmbio
internacionalização de empresas
title_short Corporate Internationalization: The effects of the exchange rate on Brazilian outward foreign direct investment
title_full Corporate Internationalization: The effects of the exchange rate on Brazilian outward foreign direct investment
title_fullStr Corporate Internationalization: The effects of the exchange rate on Brazilian outward foreign direct investment
title_full_unstemmed Corporate Internationalization: The effects of the exchange rate on Brazilian outward foreign direct investment
title_sort Corporate Internationalization: The effects of the exchange rate on Brazilian outward foreign direct investment
author Turolla, Frederico
author_facet Turolla, Frederico
Concer, Ronald de Oliveira
author_role author
author2 Concer, Ronald de Oliveira
author2_role author
dc.contributor.author.fl_str_mv Turolla, Frederico
Concer, Ronald de Oliveira
dc.subject.por.fl_str_mv international business
Brazilian foreign direct investment
exchange rate
corporate internationalization
negócios internacionais
investimento direto brasileiro
taxa de câmbio
internacionalização de empresas
topic international business
Brazilian foreign direct investment
exchange rate
corporate internationalization
negócios internacionais
investimento direto brasileiro
taxa de câmbio
internacionalização de empresas
description This paper presents a quantitative analysis of corporate internationalization in Brazil and tests the hypothesis that the country’s strengthening currency prompted companies to expand abroad. We start with a review of the literature on the main international business approaches and theories, aiming to present the drivers behind the behavior of firms that have followed an internationalization path. We worked with the variables Exchange Rate (FX) and Brazilian Foreign Direct Investment (BFDI). We carried out Granger causality tests using the mentioned variables and found no evidence of the importance of the FX factor as a driver of corporate internationalization in Brazil. We also performed a regression analysis, which showed low significance of the FX variable’s coefficient in explaining BFDI as well. Thus, although the strong exchange rate in Brazil is often blamed for forcing companies to look abroad for investment opportunities, the evidence found in the aggregate data does not validate the initial hypothesis.
publishDate 2008
dc.date.none.fl_str_mv 2008-01-01
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
Artigo revisado pelos pares
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://www.bbronline.com.br/index.php/bbr/article/view/449
10.15728/bbr.2008.5.1.3
url http://www.bbronline.com.br/index.php/bbr/article/view/449
identifier_str_mv 10.15728/bbr.2008.5.1.3
dc.language.iso.fl_str_mv eng
por
language eng
por
dc.relation.none.fl_str_mv http://www.bbronline.com.br/index.php/bbr/article/view/449/680
http://www.bbronline.com.br/index.php/bbr/article/view/449/681
dc.rights.driver.fl_str_mv Copyright (c) 2008 Brazilian Business Review
https://creativecommons.org/licenses/by/4.0
info:eu-repo/semantics/openAccess
rights_invalid_str_mv Copyright (c) 2008 Brazilian Business Review
https://creativecommons.org/licenses/by/4.0
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
application/pdf
dc.publisher.none.fl_str_mv FUCAPE Business Shool
publisher.none.fl_str_mv FUCAPE Business Shool
dc.source.none.fl_str_mv Brazilian Business Review; Vol. 5 No. 1 (2008): January to April 2008; 35-48
Brazilian Business Review; v. 5 n. 1 (2008): Janeiro a Abril de 2008; 35-48
1808-2386
1807-734X
reponame:BBR. Brazilian Business Review (English edition. Online)
instname:Fucape Business School (FBS)
instacron:FBS
instname_str Fucape Business School (FBS)
instacron_str FBS
institution FBS
reponame_str BBR. Brazilian Business Review (English edition. Online)
collection BBR. Brazilian Business Review (English edition. Online)
repository.name.fl_str_mv BBR. Brazilian Business Review (English edition. Online) - Fucape Business School (FBS)
repository.mail.fl_str_mv || bbronline@bbronline.com.br
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