Corporate Internationalization: The effects of the exchange rate on Brazilian outward foreign direct investment
Autor(a) principal: | |
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Data de Publicação: | 2008 |
Outros Autores: | |
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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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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1754732238679834624 |