Does foreign direct investment cause higher levels of productivity or do higher levels of productivity attract foreign direct investment? A study in transforming brazilian industry
With this research, it was aimed to investigate the factors that determine the investment decision of foreign investors in the Brazilian industry. Evidence shows that foreign investors are attracted not only by more productive and best performing sectors, but depending on the adopted strategy, they...
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Universidade Federal de Santa Catarina
2013-04-01
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Online Access: | https://periodicos.ufsc.br/index.php/adm/article/view/18667 |
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doaj-67816aa13a0047e69c2905d77eab46712020-11-25T00:13:39ZporUniversidade Federal de Santa CatarinaRevista de Ciências da Administração : RCA1516-38652175-80772013-04-011535829410.5007/2175-8077.2013v15n35p8219889Does foreign direct investment cause higher levels of productivity or do higher levels of productivity attract foreign direct investment? A study in transforming brazilian industryNádia Campos Pereira0Cristina Lelis Leal Calegario1Ricardo Pereira Reis2Universidade Federal de GoiasUniversidade Federal de LavrasUniversidade Federal de LavrasWith this research, it was aimed to investigate the factors that determine the investment decision of foreign investors in the Brazilian industry. Evidence shows that foreign investors are attracted not only by more productive and best performing sectors, but depending on the adopted strategy, they may choose investment projects in sectors that have lower performance levels which offer the potential for growth and the and improvement of efficiency levels and capacity. Granger causality test indicated that not only foreign investment gives more productivity gains, but also this productivity induces more foreign investment inputs. Foreign investors are also attracted by those sectors, which use their assets in an inefficient way in order to generate profits. These sectors may be attractive to foreign investors that want to invest in a more aggressive growth policy in order to get advantages on the availability of inefficiently used assets. These sectors may be also attractive targets to investors who seek to compete directly in relatively less competitive sectors.https://periodicos.ufsc.br/index.php/adm/article/view/18667investment decisionforeign investorstransforming brazilian industry |
collection |
DOAJ |
language |
Portuguese |
format |
Article |
sources |
DOAJ |
author |
Nádia Campos Pereira Cristina Lelis Leal Calegario Ricardo Pereira Reis |
spellingShingle |
Nádia Campos Pereira Cristina Lelis Leal Calegario Ricardo Pereira Reis Does foreign direct investment cause higher levels of productivity or do higher levels of productivity attract foreign direct investment? A study in transforming brazilian industry Revista de Ciências da Administração : RCA investment decision foreign investors transforming brazilian industry |
author_facet |
Nádia Campos Pereira Cristina Lelis Leal Calegario Ricardo Pereira Reis |
author_sort |
Nádia Campos Pereira |
title |
Does foreign direct investment cause higher levels of productivity or do higher levels of productivity attract foreign direct investment? A study in transforming brazilian industry |
title_short |
Does foreign direct investment cause higher levels of productivity or do higher levels of productivity attract foreign direct investment? A study in transforming brazilian industry |
title_full |
Does foreign direct investment cause higher levels of productivity or do higher levels of productivity attract foreign direct investment? A study in transforming brazilian industry |
title_fullStr |
Does foreign direct investment cause higher levels of productivity or do higher levels of productivity attract foreign direct investment? A study in transforming brazilian industry |
title_full_unstemmed |
Does foreign direct investment cause higher levels of productivity or do higher levels of productivity attract foreign direct investment? A study in transforming brazilian industry |
title_sort |
does foreign direct investment cause higher levels of productivity or do higher levels of productivity attract foreign direct investment? a study in transforming brazilian industry |
publisher |
Universidade Federal de Santa Catarina |
series |
Revista de Ciências da Administração : RCA |
issn |
1516-3865 2175-8077 |
publishDate |
2013-04-01 |
description |
With this research, it was aimed to investigate the factors that determine the investment decision of foreign investors in the Brazilian industry. Evidence shows that foreign investors are attracted not only by more productive and best performing sectors, but depending on the adopted strategy, they may choose investment projects in sectors that have lower performance levels which offer the potential for growth and the and improvement of efficiency levels and capacity. Granger causality test indicated that not only foreign investment gives more productivity gains, but also this productivity induces more foreign investment inputs. Foreign investors are also attracted by those sectors, which use their assets in an inefficient way in order to generate profits. These sectors may be attractive to foreign investors that want to invest in a more aggressive growth policy in order to get advantages on the availability of inefficiently used assets. These sectors may be also attractive targets to investors who seek to compete directly in relatively less competitive sectors. |
topic |
investment decision foreign investors transforming brazilian industry |
url |
https://periodicos.ufsc.br/index.php/adm/article/view/18667 |
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