Psychic distance and other determinants of the EU new member states’ outward foreign direct investment
DOI: https://doi.org/10.3846/tede.2026.25309Abstract
Research on outward Foreign Direct Investment (OFDI) has so far been focused on developed countries. However, the significance of emerging and transition economies is increasing. The literature review shows the gap in research on determinants of the EU NMS (European Union New Member States) OFDI, in particular regarding Psychic Distance (PD). The paper motivates theoretically and uses a gravity model to investigate the drivers behind OFDI from NMS. We apply Hausman-Taylor (HT), Poisson Pseudo-Maximum Likelihood (PPML), and Gamma Pseudo-Maximum Likelihood (GPML) estimators. These are the characteristics of the destination country that exert more significant influence than the origin, which raises scepticism about OFDI being stimulated by policy measures in the case of the NMS. A tax-avoiding motive strongly drives their OFDI. We contribute to the literature by showing that PD affects OFDI from the NMS and is an alternative to distance in kilometres, which is traditionally used in gravity models. Socioeconomic and psychic distances are robust alternatives, while other single-dimensional ones (language, industrial, democratic, or religious) are not. Our findings confirm that NMS’s OFDI strongly depends on the Inward Foreign Direct Investment (IFDI) from the counterpart economies.
Keywords:
outward FDI, psychic distance, tax havens, gravity, post-communist economiesHow to Cite
Share
License
Copyright (c) 2026 The Author(s). Published by Vilnius Gediminas Technical University.
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
Association of Business Services Leaders. (2024). Business Services Sector in Poland 2024. https://2024.abslsummit.com/files/settings/20240613144141-business-services-sector-in-poland2024.pdf
Adithi, A. (2018). Development of institutional theory and its application to MNE context: A review of literature. Focus: Journal of International Business, 4(2), 124–141. https://doi.org/10.17492/focus.v4i02.11693
Antràs, P., & Yeaple, S. R. (2013). Multinational firms and the structure of international trade. In G. Gopinath, E. Helpman, & K. Rogoff (Eds.), Handbook of International Economics (pp. 55–130). Elsevier. https://doi.org/10.1016/B978-0-444-54314-1.00002-1
Ateş, L., Cobham, A., Harari, M., Janský, P., Meinzer, M., Millán, L., & Palanský, M. (2020). The Corporate Tax Haven Index. A new geography of profit shifting. In B. Unger, L. Rossel & J. Ferwerda (Eds.), Combating fiscal fraud and empowering regulators. Bringing tax money back into the COFFERS (pp. 89–111). Oxford Academic. https://doi.org/10.1093/oso/9780198854722.003.0006
Aykut, D., Sanghi, A., & Kosmidou, G. (2017). What to do when foreign direct investment is not direct or foreign: FDI round tripping (Policy Research Working Paper No. 8046). World Bank.
Azar, G., & Drogendijk, R. (2014). Psychic distance, innovation, and firm performance. Management International Review, 54, 581–613. https://doi.org/10.1007/s11575-014-0219-2
Barnard, H., & Luiz, J. M. (2018). Escape FDI and the dynamics of a cumulative process of institutional misalignment and contestation: Stress, strain and failure. Journal of World Business, 53(5), 605–619. https://doi.org/10.1016/j.jwb.2018.03.010
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108
Barney, J., Wright, M., & Ketchen, D. J. (2001). The resource-based view of the firm: Ten years after 1991. Journal of Management, 27(6), 625–641. https://doi.org/10.1177/014920630102700601
Barrell, R., & Nahhas, A. (2022). Regional integration and bilateral FDI Stocks in the OECD. International Journal of Finance & Economics, 27(3), 3032–3050. https://doi.org/10.1002/ijfe.2311
Beckerman, W. (1956). Distance and the pattern of intra-European trade. The Review of Economics and Statistics, 38(1), 31–40. https://doi.org/10.2307/1925556
Bellak, C., Leibrecht, M., & Roemisch, R. (2005). New evidence on the tax burden of MNC activities in central- and east-European New Member States (SFB International Tax Coordination Paper No. 2). SSRN. https://doi.org/10.2139/ssrn.869222
Bellak, C., Leibrecht, M., & Damijan, J. P. (2009). Infrastructure endowment and corporate income taxes as determinants of foreign direct investment in central and eastern European countries. The World Economy, 32(2), 267–290. https://doi.org/10.1111/j.1467-9701.2008.01144.x
Bhasin, N., & Kapoor, K. (2021). Impact of outward FDI on home country exports. International Journal of Emerging Markets, 16(6), 1150–1175. https://doi.org/10.1108/IJOEM-05-2017-0160
Blažević, B., Jelušić, A., & Perić J. (2005, May 26–28). Outward foreign direct investment from Central and Eastern European countries. In Proceedings of the Sixth International Conference on Enterprise in Transition (pp. 221–223). Bol, Croatia. University of Split.
Bloningen, B. A., & Piger, J. (2014). Determinants of foreign direct investment. The Canadian Journal of Economics / Revue Canadienne D’economique, 47(3), 775–812. https://doi.org/10.1111/caje.12091
Bolwijn, R., Casella, B., & Rigo, D. (2018). An FDI-driven approach to measuring the scale and economic impact of BEPS. Transnational Corporations, 25(2), 107–143. https://doi.org/10.18356/c4f9fd3c-en
Boyacigiller, N. (1990). The role of expatriates in the management of interdependence complexity and risk in multinational corporations. Journal of International Business Studies, 21, 357–381. https://doi.org/10.1057/palgrave.jibs.8490825
Brewer, P. A. (2007). Operationalizing psychic distance: A revised approach. Journal of International Marketing, 15(1), 44–66. https://doi.org/10.1509/jimk.15.1.044
Brodzicki, T., Ciołek, D., & Śledziewska, K. (2017). What really determines Polish exports? The semi-mixed effects gravity model for Poland. Argumenta Oeconomica, 2(39), 5–20. https://doi.org/10.15611/aoe.2017.2.01
Brodzicki, T., & Uminski, S. (2018). A gravity panel data analysis of foreign trade by regions: The role of metropolises and history. Regional Studies, 52(2), 261–273. https://doi.org/10.1080/00343404.2017.1296123
Buckley, P. J. (2018). Internalisation theory and outward direct investment by emerging market multinationals. Management International Review, 58, 195–224. https://doi.org/10.1007/s11575-017-0320-4
Buckley, P. J., Sutherland, D., Voss, H., & El-Gohari, A. (2013). The economic geography of offshore incorporation in tax havens and offshore financial centres: The case of Chinese MNEs. Journal of Economic Geography, 15(1), 103–128. https://doi.org/10.1093/jeg/lbt040
Camarero, M., Montolio, L., & Tamarit, C. (2022). Explaining German outward FDI in the EU: A reassessment using Bayesian model averaging and GLM estimators. Empirical Economics, 62, 487–511. https://doi.org/10.1007/s00181-021-02040-4
Cantah, G. W., Brafu-Insaidoo, G. W., Wiafe, E. A., & Adams, A. (2018). FDI and trade policy openness in Sub-Saharan Africa. Eastern Economic Journal, 44, 97–116. https://doi.org/10.1057/eej.2016.9
Cantwell, J. (1989). Technological innovation and multinational corporations. Basil Blackwell.
Cantwell, J. A. (1994). The relationship between international trade and international production. In D. Greenaway & L. A. Winters (Eds.), Surveys in international trade (pp. 303–328). Basil Blackwell.
Cassella, B., & Formenti, L. (2018). UNCTAD Insights: FDI in the digital economy: A shift to asset-light international footprints. Transnational Corporations, 25(1), 101–130. https://doi.org/10.18356/cb688e94-en
Çela, A., Hysa, E., Voica, M. C., Panait, M., & Manta, O. (2022). Internationalization of large companies from central and eastern Europe or the birth of new stars. Sustainability, 14(1), Article 261. https://doi.org/10.3390/su14010261
Chen, E. K. Y. (1996). Transnational corporations and technology transfer to developing countries. In UNCTAD (Ed.), Transnational corporations and world development (pp. 181–214). Routledge.
Chen, C., Zhan, Y., Yi, C., Li, X., & Wu, Y. J. (2020). Psychic distance and outward foreign direct investment: The moderating effect of firm heterogeneity. Management Decision, 58(7), 1497–1515. https://doi.org/10.1108/MD-06-2019-0731
Chen, Y. C., Arnold, T., Liu, P. Y., & Huang, C. Y. (2023). Understanding the role of entrepreneurial orientation in creating ambidextrous competitive advantage: A comparative-design, Longitudinal Study. European Journal of Marketing, 57(1), 89–124. https://doi.org/10.1108/EJM-08-2021-0661
Child, J., Ng, S. H., & Wong, C. (2002). Psychic distance and internationalization: Evidence from Hong Kong firms. International Studies of Management & Organization, 32(1), 36–56. https://doi.org/10.1080/00208825.2002.11043656
Child, J., & Rodrigues, S. B. (2005). The internationalization of Chinese firms: A case for theoretical extension? Management and Organization Review, 1(3), 381–410. https://doi.org/10.1111/j.1740-8784.2005.0020a.x
Cieślik, A., & Ghodsi, M. (2021). Economic sentiment indicators and foreign direct investment: Empirical evidence from European Union countries. International Economics, 168, 56–75. https://doi.org/10.1016/j.inteco.2021.07.001
Cieślik, A., & Gurshev, O. (2021). Factor endowments, economic integration, round-tripping, and inward FDI: Evidence from the Baltic economies. Journal of Risk and Financial Management, 14(8), Article 348. https://doi.org/10.3390/jrfm14080348
Cieślik, A., Gurshev, O., & Hamza, S. (2022). Between the Eurozone crisis and the Brexit: The decade of British outward FDI into Europe. Empirical Economics, 63(3), 1159–1192. https://doi.org/10.1007/s00181-021-02177-2
Cieślik, A., & Nguyen, A. T. N. (2016). Determinants of foreign direct investment from OECD to ASEAN. In Forum for Research on Empirical International Trade (pp. 1–30). https://www.freit.org/WorkingPapers/Papers/ForeignInvestment/FREIT987.pdf
Coldwell, D. A. L., & Joosub, T. (2018). The FDI psychic distance paradox: Myth or reality? Journal of Business & Retail Management Research, 12(2), 38–48. https://doi.org/10.24052/JBRMR/V12IS02/TFPDPMOR
Conte, M., Cotterlaz, P., & Mayer, T. (2022). The CEPII Gravity Database (CEPII Working Paper No. 2022-05). https://www.cepii.fr/CEPII/en/bdd_modele/bdd_modele_item.asp?id=8
Cuervo-Cazurra, A., & Narula, R. (2015). A set of motives to unite them all? Revisiting the principles and typology of MNE motives. Multinational Business Review, 23(1), 2–14. https://doi.org/10.1108/MBR-03-2015-0010
Cuervo-Cazurra, A., & Ramamurti, R. (2015). The escape motivation of emerging market multinational enterprises. Columbia FDI Perspectives, 143.
Damgaard, J., Elkjær, T., & Johannesen, N. (2019). The Rise of Phantom Investments: Empty corporate shells in tax heavens undermine tax collection. Finance & Development, 56(3). International Monetary Fund. https://www.elibrary.imf.org/view/journals/022/0056/003/article-A004-en.xml
Delis, M. D., Gaganis, C., Hasan, I., & Pasiouras, F. (2017). The effect of board directors from countries with different genetic diversity levels on corporate performance. Management Science, 63(1), 231–249. https://doi.org/10.1287/mnsc.2015.2299
Deng, Z., Yan, J., & Sun, P. (2020). Political status and tax haven investment of emerging market firms: Evidence from China. Journal of Business Ethics, 165, 469–488. https://doi.org/10.1007/s10551-018-4090-0
Djokoto, J. G. (2021). The investment development path theory and small states. Research in Globalization, 3, Article 100048. https://doi.org/10.1016/j.resglo.2021.100048
Dobrowolska, B., Dorożyński, T., & Kuna-Marszałek, A. (2024). Does governance matter for outward FDI? Evidence from the European Union Member States. Comparative Economic Research. Central and Eastern Europe, 27(4), 67–87. https://doi.org/10.18778/1508-2008.27.31
Dow, D. (2023). The research page of Douglas Dow: Psychic distance stimuli. Retrieved July 25, 2023, from https://dow.net.au/?page_id=29
Dow, D., & Ferencikova, S. (2010). More than just national cultural distance: Testing new distance scales on FDI in Slovakia. International Business Review, 19(1), 46–58. https://doi.org/10.1016/j.ibusrev.2009.11.001
Dow, D., & Karunaratna, A. (2006). Developing a multidimensional instrument to measure psychic distance stimuli. Journal of International Business Studies, 37, 578–602. https://doi.org/10.1057/palgrave.jibs.8400221
Driffield, N., Jones, C., Kim, J. Y., & Temouri, Y. (2021). FDI motives and the use of tax havens: Evidence from South Korea. Journal of Business Research, 135, 644–662. https://doi.org/10.1016/j.jbusres.2021.06.061
Dunning, J. H., & Narula, R. (1996). The investment development path revisited: Some emerging issues. In Foreign direct investments and governments: Catalysts For economic restructuring (pp. 1–41). Routledge.
Dunning, J. H. (1970). Studies in international investment. Allen & Unwin.
Dunning, J. H. (2002a). Regions, globalization, and the knowledge-based economy. Oxford University Press. https://doi.org/10.1093/0199250014.001.0001
Dunning, J. H. (2002b). The investment development path revisited. In Theories and paradigms of international business activity: The selected essays of John H. Dunning (vol. 1, pp. 138–172). Edward Elgar Publishing. https://doi.org/10.4337/9781843767053.00010
Dunning, J. H. (2006). Comments on Dragon multinationals. Asia Pacific Journal of Management, 23, 139–141. https://doi.org/10.1007/s10490-006-7161-1
Dunning, J. H., & Lundan, S. M. (2008). Multinational enterprises and the global economy (2nd ed.). Edward Elgar Publishing.
Egger, P. (2005). Alternative techniques for estimation of cross-section gravity models. Review of International Economics, 13(5), 881–891. https://doi.org/10.1111/j.1467-9396.2005.00542.x
Enderwick, P., & Buckley, P. J. (2020). Rising regionalization: Will the post-COVID-19 world see a retreat from globalization? Transnational Corporations, 27(2), 99–112. https://doi.org/10.18356/8008753a-en
Erokhin, D. (2023). Tax effects on foreign direct investment – Just a rerouting. The World Economy, 46(9), 2808–2834. https://doi.org/10.1111/twec.13465
Felix, K., Jones, C., Rewilak, J., & Temouri, Y. (2025). Democracy and natural resources: Their institutional impact on tax haven use by emerging market multinational enterprises. Management International Review, 65, 903–947. https://doi.org/10.1007/s11575-025-00592-6
Forsgren, M. (2008). Theories of the multinational firm: A multidimensional creature in te global economy. Edward Elgar Publishing.
Forte, R., & Ferreira, M. (2023). Determinants of outward FDI from developing economies: Evidence for a sample of Latin American countries. Latin American Business Review, 24(3), 243–268. https://doi.org/10.1080/10978526.2023.2222668
Gao, R. (2023). Inward FDI spillovers and emerging multinationals’ outward FDI in two directions. Asia Pacific Journal of Management, 40, 265–293. https://doi.org/10.1007/s10490-021-09788-4
Ginevičius, R., & Tvaronavičiene, M. (2005). Inward and outward FDI in Lithuania and Estonia: Review of patterns in neighboring countries. Journal of Business Economics and Management, 6(3), 179–188. https://doi.org/10.3846/16111699.2005.9636106
Giordano, C., & Lopez-Garcia, P. (2019). Firm heterogeneity and trade in EU countries: A cross-country analysis (Bank of Italy Occasional Paper No. 506). SSRN. https://doi.org/10.2139/ssrn.3446774
Girma, S., Görg, H., & Strobl, E. (2004). Exports, international investment, and plant performance: Evidence from a nonparametric test. Economics Letters, 83(3), 317–324. https://doi.org/10.1016/j.econlet.2003.10.024
Gorynia, M., & Jankowska, B. (2007). The internationalization theories of the firm: A short review. Gospodarka Narodowa, 219(10), 21–44. https://doi.org/10.33119/GN/101377
Gorynia, M., Jankowska, B., & Wolniak, R. (2007). Motives for undertaking FDI in Poland: Market-seeking and efficiency-seeking considerations. Argumenta Oeconomica, 2(19), 45–65.
Gorynia, M., Nowak, J., Trąpczyński, P., & Wolniak, R. (2015). Outward FDI of Polish firms: The role of motives, entry modes and location factors. Journal of East European Management Studies, 20(3), 328–359. https://doi.org/10.5771/0949-6181-2015-3-328
Gorynia, M., Nowak, J., Trąpczyński, P., & Wolniak, R. (2022). Integration and investment development paths of CEE countries. Does EU-membership make a difference? Eurasian Geography and Economics, 63(1), 27–54. https://doi.org/10.1080/15387216.2020.1828124
Gouveia, S., Rebelo, J., & Lourenço-Gomes, L. (2018). Port wine exports: A gravity model approach. International Journal of Wine Business Research, 30(2), 218–242. https://doi.org/10.1108/IJWBR-02-2017-0008
Graham, E. M. (1975). Oligopolistic imitation, theories of foreign direct investment, and European direct investment in the United States (Working Paper No. 817-75). Alfred P. Sloan School of Management.
Graham, E. M. (1990). Exchange of threat between multinational firms as an infinitely repeated noncooperative game. The International Trade Journal, 4(3), 259–277. https://doi.org/10.1080/08853909008523695
Håkanson, L., & Ambos, B. (2010). The antecedents of psychic distance. Journal of International Management, 16(3), 195–210. https://doi.org/10.1016/j.intman.2010.06.001
Hassan, S. S. (2015). Economic institutions and the outward FDI location strategies of emerging market multinational business groups: Evidence from Central and Eastern European countries. Review of Economics and Institutions, 6(1), Article 6.
Head, K., & Mayer, T. (2014). Gravity equations: Workhorse, toolkit, and cookbook. In G. Gopinath, E. Helpman, & K. Rogoff (Eds.), Handbook of international economics (vol. 4, pp. 131–195). Elsevier. https://doi.org/10.1016/B978-0-444-54314-1.00003-3
Head, K., & Mayer, T. (2021). The United States of Europe: A gravity model evaluation of the Four Freedoms. Journal of Economic Perspectives, 35(2), 23–48. https://doi.org/10.1257/jep.35.2.23
Hymer, S. H. (1960). The international operations of national firms. A study of direct foreign investment [Doctoral thesis, Massachusetts Institute of Technology].
Hymer, S. H. (1972). The multinational corporation and the Law of Uneven Development. In J. N. Bhagwati (Ed.), Economics and World Order from the 1970’s to the 1990’s (1st ed., pp. 113–140). Collier-Macmillan.
Iammarino, S., & McCann, P. (2013). Multinationals and economic geography: Location, technology and innovation. Edward Elgar Publishing. https://doi.org/10.4337/9781781954799
Ietto‐Gillies, G. (2007). Theories of international production: A critical perspective. Critical Perspectives on International Business, 3(3), 196–210. https://doi.org/10.1108/17422040710774987
Ipsmiller, E., & Dikova, D. (2021). Internationalization from Central and Eastern Europe: A systematic literature review. Journal of International Management, 27(4), Article 100862. https://doi.org/10.1016/j.intman.2021.100862
Jensen, C. (2002). Foreign direct investment, industrial restructuring and the upgrading of Polish exports. Applied Economics, 34(2), 207–217. https://doi.org/10.1080/00036840010025641
Jensen, C. (2007). Institutional contexts and FDI trends in European emerging economies. In K. E. Meyer & S. Estrin (Eds.), Acquisition strategies in European emerging markets (pp. 11–26). Palgrave. https://doi.org/10.1057/9780230286542_2
Jiménez, A., & de La Fuente, D. (2016). Learning from others: The impact of vicarious experience on the psychic distance and FDI relationship. Management International Review, 56(5), 633–664. https://doi.org/10.1007/s11575-015-0269-0
Jindra, B., Hassan, S. S., Günther, J., & Cantner, U. (2015). European integration and outward FDI from Central and Eastern Europe – Is there any evidence of knowledge‐seeking? JCMS: Journal of Common Market Studies, 53(6), 1248–1267. https://doi.org/10.1111/jcms.12260
Jirasavetakul, L.-B. F., & Rahman, J. (2018). Foreign direct investment in New Member States of the EU and Western Balkans: Taking stock and assessing prospects (IMF Working Papers, 187). International Monetary Fund. https://doi.org/10.5089/9781484373323.001
Johanson, J., & Wiedersheim-Paul, F. (1975). The internationalization of the firm? Four Swedish cases. Journal of Management Studies, 12(3), 305–323. https://doi.org/10.1111/j.1467-6486.1975.tb00514.x
Johanson, J., & Vahlne, J. E. (1977). The internationalization process of the firm – A model of knowledge development and increasing foreign market commitments. Journal of International Business Studies, 8, 23–32. https://doi.org/10.1057/palgrave.jibs.8490676
Johanson, J., & Vahlne, J. E. (2015). The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership. In M. Forsgren, U. Holm, & J. Johanson (Eds.), Knowledge, networks and power (pp. 153–186). Palgrave. https://doi.org/10.1057/9781137508829_7
Jones, J., Serwicka, I., & Wren, C. (2020). Motives for foreign direct investment location in Europe and EU enlargement. Environment and Planning A: Economy and Space, 52(8), 1681–1699. https://doi.org/10.1177/0308518X20916503
Jormanainen, I., & Koveshnikov, A. (2012). International activities of emerging market firms. Management International Review, 52(5), 691–725. https://doi.org/10.1007/s11575-011-0115-y
Kandogan, Y. (2016). Economic development, cultural differences and FDI. Applied Economics, 48(17), 1545–1559. https://doi.org/10.1080/00036846.2015.1102847
Khan, M. A., Fatima, Z., & Fatima, S. (2023). Revisiting the gravity model of migration. Foreign Trade Review, 58(2), 329–349. https://doi.org/10.1177/00157325221088707
Kotikova, S., & Vavrek, R. (2019). Determining the size of technological gap between local firms and foreign direct investment at regional level. Journal of International Studies, 12(3), 48–63. https://doi.org/10.14254/2071-8330.2019/12-3/5
Kox, H., & Rojas-Romagosa, H. (2019). Gravity estimations with FDI bilateral data: Potential FDI effects of deep preferential trade agreements (Robert Schuman Centre for Advanced Studies Research Paper No. RSCAS 2019/70). SSRN. https://doi.org/10.2139/ssrn.3457319
Li, Y., Zhang, Y. A., & Shi, W. (2020). Navigating geographic and cultural distances in international expansion: The paradoxical roles of firm size, age, and ownership. Strategic Management Journal, 41(5), 921–949. https://doi.org/10.1002/smj.3098
Linnemann, H. (1966). An econometric study of international trade flows. North-Holland Publishing Company.
Lu, J., Ma, X., Taksa, L., & Wang, Y. (2017). From LLL to IOL3: Moving dragon multinationals research forward. Asia Pacific Journal of Management, 34, 757–768. https://doi.org/10.1007/s10490-017-9542-z
Lundan, S. (2016). Definitions, motivations, and locational determinants of foreign direct investment. In A. Tavares-Lehmann, P. Toledano, L. Johnson & L. Sachs (Eds.), Rethinking investment incentives: Trends and policy options (pp. 45–60). Columbia University Press. https://doi.org/10.7312/tava17298-004
Luo, Y., & Tung, R. L. (2007). International expansion of emerging market enterprises: A springboard perspective. Journal of International Business Studies, 38(4), 481–498. https://doi.org/10.1057/palgrave.jibs.8400275
Luo, Y., & Rui, H. (2009). An ambidexterity perspective toward multinational enterprises from emerging economies. Academy of Management Perspectives, 23(4), 49–70. https://doi.org/10.5465/amp.23.4.49
Manocha, R. (2023). Impact of regional blocs on FDI flows: A study of select Asian blocs. Journal of Development Research, 16(1), 1–30. https://doi.org/10.1177/22297561231207539
Martin, W., & Pham, C. S. (2020). Estimating the gravity model when zero trade flows are frequent and economically determined. Applied Economics, 52(26), 2766–2779. https://doi.org/10.1080/00036846.2019.1687838
Mathews, J. A. (2006). Dragon multinationals: New players in 21st century globalization. Asia Pacific Journal of Management, 23, 5–27. https://doi.org/10.1007/s10490-006-6113-0
Mayer, T., & Ottaviano, G. I. P. (2008). The happy few: The internationalisation of European firms. Intereconomics, 43, 135–148. https://doi.org/10.1007/s10272-008-0247-x
Meinhart, B. (2024). How EU membership affects foreign direct investment: Differences between EU15 and CEE countries. The World Economy, 47(5), 2194–2218. https://doi.org/10.1111/twec.13541
Melitz, M. J. (2003). The impact of trade on intra‐industry reallocations and aggregate industry productivity. Econometrica, 71(6), 1695–1725. https://doi.org/10.1111/1468-0262.00467
Melitz, M. J., & Redding, S. J. (2015). Heterogeneous Firms and Trade. In G. Gopinath, E. Helpman & K. Rogoff (Eds.), Handbook of international economics (vol. 4, pp. 1–54). Elsevier. https://doi.org/10.1016/B978-0-444-54314-1.00001-X
Narula, R., & Dunning, J. H. (2010). Multinational enterprises, development and globalization: Some clarifications and a research agenda. Oxford Development Studies, 38(3), 263–287. https://doi.org/10.1080/13600818.2010.505684
Nazarczuk, J. M., Umiński, S., & Brodzicki, T. (2020). Determinants of the spatial distribution of exporters in regions: The role of ownership. The Annals of Regional Science, 64, 547–574. https://doi.org/10.1007/s00168-019-00947-6
Nehrt, L. C. (1970). The political climate for private foreign investment. Praeger.
Nguyen, A. T. N., & Cieślik, A. (2021). Determinants of foreign direct investment from Europe to Asia. World Economy, 44(6), 1842–1858. https://doi.org/10.1111/TWEC.13064
Nguyen, A. T. N., Haug, A. A., Owen, P. D., & Genç, M. (2020). What drives bilateral foreign direct investment among Asian economies? Economic Modelling, 93, 125–141. https://doi.org/10.1016/j.econmod.2020.08.003
Nordstrom, K., & Vahlne, J.-E. (1994). Is the globe shrinking? Psychic distance and the establishment of Swedish sales subsidiaries during the last 100 years. In M. Landeck (Ed.), International trade: Regional and global issues (pp. 41–56). Palgrave.
Organisation for Economic Co-operation and Development. (2025). OECD benchmark definition of foreign direct investment (fifth edition). OECD Publishing. https://doi.org/10.1787/7f05c0a3-en
O’Grady, S., & Lane, H. W. (1996). The psychic distance paradox. Journal of International Business Studies, 27, 309–333. https://doi.org/10.1057/palgrave.jibs.8490137
Oliver, C. (1991). Strategic responses to institutional processes. The Academy of Management Review, 16(1), 145–179. https://doi.org/10.2307/258610
Peng, M. (2001). The resource-based view and international business. Journal of Management, 27(6), 803–829. https://doi.org/10.1016/S0149-2063(01)00124-6
Popovici, O. C., & Călin, A. C. (2019). FDI motivations in CEE countries. The role of governance ethics. In S. Văduva, I. Fotea, L. P. Văduva & R. Wilt (Eds.), Applied ethics for entrepreneurial success: Recommendations for the developing world: 2018 Griffiths School of Management Annual Conference (GSMAC) on Business, Entrepreneurship and Ethics (vol. 9, pp. 93–110). Springer. https://doi.org/10.1007/978-3-030-17215-2_7
Porto, M. (2023). Using R for trade policy analysis: R codes for the UNCTAD and WTO practical guide (2nd ed.). Springer. https://doi.org/10.1007/978-3-031-35044-3
Puthusserry, P., Khan, Z., Nair, S. R., & King, T. (2021). Mitigating psychic distance and enhancing internationalization of fintech SMEs from emerging markets: The role of board of directors. British Journal of Management, 32(4), 1097–1120. https://doi.org/10.1111/1467-8551.12502
Rugman, A. M. (2009). Theoretical aspects of MNEs from emerging economies. In R. Ramamurti & J. V. Singh (Eds.), Emerging multinationals in emerging markets (pp. 42–63). Cambridge University Press.
Santos Silva, J. M. C. S., & Tenreyro, S. (2006). The log of gravity. The Review of Economics and Statistics, 88(4), 641–658. https://doi.org/10.1162/rest.88.4.641
Sawitri, K. A., & Brennan, L. (2023). The investment development path literature: A review and research agenda. Management Review Quarterly, 73, 1825–1872. https://doi.org/10.1007/s11301-022-00287-4
Shen, J. H., Wang, H., & Lin, S. C. C. (2021). Productivity gap and inward FDI spillovers: Theory and evidence from China. China & World Economy, 29(2), 24–48. https://doi.org/10.1111/cwe.12369
Silva Rêgo, B. F. da. (2020). Inward and outward incentives for the internationalization of firms [Doctoral dissertation. Universidade Federal do Rio de Janeiro].
Svetlicic, M., & Jaklic, A. (2007). Outward FDI from New European Union Member States. In K. Liebscher, J. Christl, P. Mooslechner, & D. Ritzberger-Grünwald (Eds.), Foreign direct investment in Europe. Edward Elgar Publishing. https://doi.org/10.4337/9781847208798.00028
Szunomár, Á. (2020). Theories of internationalization and foreign direct investment: How to explain FDI from emerging MNEs? In Á. Szunomár (Ed.), Emerging-market multinational enterprises in East Central Europe (pp. 3–19). Springer. https://doi.org/10.1007/978-3-030-55165-0_1
Thite, M., Wilkinson, A., Budhwar, P., & Mathews, J. A. (2016). Internationalization of emerging Indian multinationals: Linkage, leverage and learning (LLL) perspective. International Business Review, 25(1), 435–443. https://doi.org/10.1016/j.ibusrev.2015.06.006
United Nations Conference on Trade and Development. (2022). World investment report 2022: International tax reforms and sustainable investment. United Nations.
Umiński, S., & Borowicz, A. (2021). Will multinational enterprises contribute to Poland’s economic resilience and recovery during and post COVID-19 pandemic. Transnational Corporations Review, 13(1), 74–87. https://doi.org/10.1080/19186444.2021.1888638
Umiński, S., Nazarczuk, J. M., & Borowicz, A. (2023). The role of foreign-owned entities in building economic resilience in times of crisis: The case of European digital and technologically-intensive firms during the COVID-19 PANDEMIC. Equilibrium. Quarterly Journal of Economics and Economic Policy, 18(3), 751–777.
Vahlne, J. E., & Johanson, J. (2017). From internationalization to evolution: The Uppsala model at 40 years. Journal of International Business Studies, 48, 1087–1102. https://doi.org/10.1057/s41267-017-0107-7
Verde, A. (2017). Is globalisation doomed? The economic and political threats to the future of globalisation. Palgrave. https://doi.org/10.1007/978-3-319-58583-3
Wallerstein, I. (1974). The rise and future demise of the world capitalist system: Concepts for comparative analysis. Comparative Studies in Society and History, 16(4), 387–415. https://doi.org/10.1017/S0010417500007520
Witkowska, J. (2023). The role of FDI in the sustainable development of the European Union. Comparative Economic Research. Central and Eastern Europe, 26(1), 21–43. https://doi.org/10.18778/1508-2008.26.02
Witt, M. A., & Lewin, A. Y. (2007). Outward foreign direct investment as escape response to home country institutional constraints. Journal of International Business Studies, 38(4), 579–594. https://doi.org/10.1057/palgrave.jibs.8400285
Wojciechowski, L., & Wach, K. (2014). The factors of outward FDI from V4 countries from the perspective of EU and EMU membership: A panel gravity model approach. Acta Universitatis Lodziensis. Folia Oeconomica, 5(307), 169–184.
Xia, J., Ma, X., Lu, J. W., & Yiu, D. W. (2014). Outward foreign direct investment by emerging market firms: A resource dependence logic. Strategic Management Journal, 35(9), 1343–1363. https://doi.org/10.1002/smj.2157
Xu, C., Xiong, Y., Sun, Y., & Liu, Y. (2021). Genetic distance, international experience and the performance of cross-border R&D for EMNEs. Journal of International Management, 27(2), Article 100853. https://doi.org/10.1016/j.intman.2021.100853
Yan, H., Wang, J., & Deng, P. (2018). Outbound linkage and inbound leverage for emerging multinationals: A signaling theory perspective. Asia Pacific Journal of Management, 35, 347–372. https://doi.org/10.1007/s10490-017-9554-8
Yin, T., Propris, L. de, & Jabbour, L. (2021). Assessing the effects of policies on China’s outward foreign direct investment. International Business Review, 30(5), Article 101818. https://doi.org/10.1016/j.ibusrev.2021.101818
Yotov, Y. V., Piermartini, R., Monteiro, J. A., & Larch, M. (2016). An advanced guide to trade policy analysis: The structural gravity model. WTO. https://doi.org/10.30875/abc0167e-en
Zaheer, S. (1995). Overcoming the liability of foreignness. Academy of Management Journal, 38(2), 341–363.
View article in other formats
CrossMark check
Published
Issue
Section
Copyright
Copyright (c) 2026 The Author(s). Published by Vilnius Gediminas Technical University.
License
This work is licensed under a Creative Commons Attribution 4.0 International License.