The Baltic Region

2016 Issue №3

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Framework for the Analysis of Geography of Transnational Corporations Investments Abroad



This article develops a methodology for studying the geography of companies — an area of human geography that remains understudied in Russia. The authors refer to foreign direct investment (FDI) studies to stress the importance of analysing individual transnational corporations. Special attention is paid to FDI statistics, including international statistics provided by IMF, OECD, and UNCTAD, the official data of central banks on FDI destinations, and information on companies’ assets by geographical segments. The article emphasises limitations of classical localisation concepts (e. g. A. Lösch’s theory) and key concepts of transnationalisation (e. g. J. H. Dunning’s ‘eclectic paradigm’, R. Vernon’s ‘product life cycle’, and the ‘flying geese paradigm’ developed by Japanese authors). Dynamic localisation concepts (e. g. the Uppsala model and hierarchical/wave diffusion models) are considered an important contribution to the existing theoretical framework for studying FDI geography. Various patterns of spatial d istribution of FDI are examined taking Russian transboundary investments, including those distorted by the ‘neighbourhood effect’ as an example.


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