Foreign investment in the Caribbean : multinational enterprise motivation, investment behaviour and corporate strategy
Barclay, Lou Anne (1998) Foreign investment in the Caribbean : multinational enterprise motivation, investment behaviour and corporate strategy. PhD thesis, University of Warwick.
WRAP_THESIS_Barclay_1998.pdf - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader
Official URL: http://webcat.warwick.ac.uk/record=b1363689~S15
Foreign Direct Investment (FDI) is playing an increasingly important role in
the economies of many less industrialised countries. The Caribbean, specifically
Jamaica, Barbados and Trinidad-Tobago are excellent examples of this phenomenon.
The increased dependence of these countries on FDI calls to question the
attractiveness of their business environment to the foreign investor. This study aims to
provide answers to this research question. To this end, it examines the factors that
influence the motivations, locational choices and market entry mode of multinational
enterprises making investment in these three countries. This study also seeks to
ascertain the extent to which these factors are influenced by the timing of the
investment decision, the type of FDI (market-seeking, resource-seeking and export-seeking)
and the country of origin of the investor. It is also concerned with the factors
that influence the initial investment decision as well as the decision to continue
operations in the countries.
Fourteen hypotheses were advanced from the International Business literature.
A triangulation approach to research methodology was employed in the study. The
hypotheses were initially tested by means of a mailed questionnaire survey which was
administered to 299 executives of multinational enterprises that operate in the three
Caribbean countries. The hypotheses were further tested using the qualitative method
of a case study approach. Twelve core cases of multinational enterprises operating in
the export sectors of the three Caribbean countries were analysed.
This study demonstrated the non-applicability of several of the FDI theories to
the realities of small, developing economies. These theories were developed largely to
explain the behaviour of firms originating in industrialised countries and making
investments in these countries. Hence, several did not seem to fully explain the FDI
process undertaken in the Caribbean. One notable exception was that of the "Double
Diamond" model. The study showed that the "Double Diamond" model is a powerful
framework for analysing the business environments of the three Caribbean countries
This study also illustrated the importance of government implementing
strategies to ensure that the business environment is supportive of the foreign investor.
Further, the study suggests that investments need to be made in human resource
development, and institutional and infrastructural improvements. It also revealed that
the investment incentive package needs to be revised and a nexus created between the
government and the foreign investor. Finally, the study suggests that support needs to
be given for the development of the locally owned firm.
|Item Type:||Thesis or Dissertation (PhD)|
|Subjects:||H Social Sciences > HG Finance|
|Library of Congress Subject Headings (LCSH):||Investments, Foreign -- Jamaica, Investments, Foreign -- Barbados, Investments, Foreign -- Trinidad and Tobago, International business enterprises -- Jamaica, International business enterprises -- Barbados, International business enterprises -- Trinidad and Tobago|
|Official Date:||February 1998|
|Institution:||University of Warwick|
|Theses Department:||Warwick Business School|
|Supervisor(s)/Advisor:||Gray, S. J.|
|Extent:||x, 408,  leaves|
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