What Investors Want : Perceptions and Experiences of Multinational Corporations in Developing Countries
This paper discusses the results of a survey of multinational corporations with affiliates in developing countries. The paper explores corporate perspectives and decision making across the stages of the investment cycle: attraction, entry and estab...
| Main Authors: | , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2018
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/168711522241146651/What-investors-want-perceptions-and-experiences-of-multinational-corporations-in-developing-countries http://hdl.handle.net/10986/29566 |
| Summary: | This paper discusses the results of a
survey of multinational corporations with affiliates in
developing countries. The paper explores corporate
perspectives and decision making across the stages of the
investment cycle: attraction, entry and establishment,
operations and expansion, linkages with the local economy,
and, in some cases, divestment and exit. Through interviews
with 754 executives, the survey finds that political
stability and a business-friendly regulatory environment are
the top two factors influencing multinational
corporations' investment decisions in developing
countries. Investors seek predictable, transparent, and
efficient conduct of public agencies. The survey results
also show that investors are heterogeneous, and their
perceptions vary with motivation and size. Multinational
corporations that are involved in efficiency-seeking
investment are more selective than investors motivated by
other considerations, and that relatively smaller
multinational corporations are more sensitive to host
country characteristics and investment climate factors than
large firms. |
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