Internationalization strategies in emerging economies and future opportunities of green hydrogen: a Brazilian market study

• Autor(a) principal: Ferraresso, Pietro
• Data de Publicação: 2023
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Institucional do FGV (FGV Repositório Digital)
• Texto Completo: https://hdl.handle.net/10438/33580
• topic: Green FDI; Internationalization strategies; Emerging economies; Brazilian green hydrogen market; Renewable energy sector; IED verde; Estratégias de internacionalização; Economias emergentes; Mercado brasileiro de hidrogênio verde; Setor de energia renovável; Administração de empresas; Globalização; Energia elétrica - Brasil; Hidrogênio; Energia - Fontes alternativas; Empresas multinacionais

This master's research thesis is thought to analyze which would be the best internationalization strategy to enter the Brazilian energy market. In this sense, foreign direct investments from developed countries to emerging markets will be the subject under analysis. Brazil is one of the richest countries in the world in terms of natural resources and has all the chances to become the future leader in green hydrogen production and distribution. The combination between Brazilian resources and the technological knowledge of the developed world can be successful not only in the mitigation of the climate crisis we are all living in but also as an incredibly profitable business opportunity. In the first part, the literature regarding FDIs and green foreign direct investments is reviewed, trying to deeply understand what they are, what they are useful for, and why emerging countries could be excellent destinations for them. Additionally, considering the Brazilian energy sector, a study on all the possible internationalization and market-entry strategies for a company willing to settle in the BRIC countries is carried on. Following this path, the risks, challenges, and fights related to emerging economies have been highlighted, trying to unlock their view not just from a negative perspective, but also from the incredible business opportunities that they represent. In the second part of the thesis, the green hydrogen business is well explained, and all the advanced technologies required for its production are underlined. Besides, in order to understand how this business could fit in the Brazilian environment, an analysis of the Brazilian energy sector precedes a comprehensive market analysis of the Brazilian green hydrogen business. In the third chapter, as a logical continuation of the qualitative study seen before, a quantitative analysis of all the FDIs in Brazilian PPI projects (from 1990 to 2021) is accomplished. This analysis is aimed to answer empirically the research question, and the implementation of a linear probability model with the software R ad Microsoft Excel should help the reader to understand what kind of investment would be applied, between greenfield and brownfield, considering some significant regressors extracted from the database. The data and the methodology are deeply described, and the results of the analysis are shown. The qualitative investigation of the Brazilian green hydrogen market and the creation of a linear probability model to identify the optimum internationalization strategies to enter the energy sector of a developing economy are the two most unique parts of this thesis. Finally, hoping to make these themes fascinating to the reader and spark more learning from other sources, this master’s research thesis aims to trigger a positive thought about the future, in terms of both sustainability and business opportunities.