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MNCs Foreign Investment, Natural Disasters, and Country Governance
from Part II - Conceptual Framework
Published online by Cambridge University Press: 28 April 2022
In Chapter 4, we shift the focus of our analytical framework to the effect of natural disasters on subsidiary-level foreign direct investments by multinational corporations (MNCs). in this chapter we conceptually examine how natural disasters, compared to industrial disasters and terrorist attacks, shape MNCs foreign market entry and expansion. We also investigate whether MNC subsidiary-level investment is more likely to decrease in response to specific types of natural disasters that result in a higher number of fatalities. In addition, we also elaborate on how country institutional governance characteristics (i.e., regulatory quality, rule of law, democratic freedoms, political stability, and corruption levels) moderate the relationship between disasters and MNC subsidiary-level investment.
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