Abstract
FDI research has predominantly focused on gain-based motivations, but increasingly other loss avoidance-based motives, such as escape, have become more prominent. However, studies of escape have been largely conceptual or do not explicitly disentangle escape from other motives. Combining a natural experiment-based research design with behavioral predictions derived from prospect theory, we attempt to advance this area of investigation. Examining 548 Latin American FDI deals, we found compelling support for escape. Using detailed data on 174 of the deals, we found further evidence that characteristics associated with speed, a potential priority in avoiding loss, were significantly related to escape-based FDI.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
