What the study found
Colonial ties and African cultural proximity were positively associated with outward foreign direct investment from Arab Maghreb Union countries in both greenfield investments and cross-border mergers and acquisitions. Arab cultural proximity and host-country market size were associated only with greenfield investments.
Why the authors say this matters
The authors conclude that the findings integrate cultural proximity and historical ties into international business theories and provide new insights into the outward investment behavior of emerging-market multinationals. They also say the results are relevant for attracting investment from Arab Maghreb Union countries and for using different strategies for greenfield investments and cross-border mergers and acquisitions.
What the researchers tested
The researchers examined the impact of colonial ties, cultural proximity, and host-country market size on outward foreign direct investment from Arab Maghreb Union countries. They used the Generalized Method of Moments on a panel dataset of 556 transactions from 2004 to 2022, measured by the number of deals, and compared greenfield investments with cross-border mergers and acquisitions.
What worked and what didn't
Colonial ties had the greatest impact among the variables studied, followed by African cultural proximity. The estimated coefficients were substantially larger for greenfield investments than for cross-border mergers and acquisitions, showing an entry-mode asymmetry in the determinants of outward foreign direct investment from Arab Maghreb Union countries.
What to keep in mind
The abstract does not describe detailed limitations beyond the study's scope and data period. The findings are based on 556 transactions from 2004 to 2022 and on the variables included in the analysis.
Key points
- Colonial ties and African cultural proximity were positively linked to outward investment in both entry modes.
- Arab cultural proximity and host-country market size were linked only to greenfield investments.
- Colonial ties had the largest impact among the variables studied.
- The estimated effects were larger for greenfield investments than for cross-border mergers and acquisitions.
- The analysis used a panel of 556 transactions from 2004 to 2022 and Generalized Method of Moments.
Disclosure
- Research title:
- Colonial ties and African cultural proximity shape outward investment
- Authors:
- Mohammed Amine, Jalal Eddine Liassini, Aymane Chemmaa, Mohamed FLAH, Mohammed Ibrahimi
- Institutions:
- English Institute of Sport, University of Hassan II Casablanca
- Publication date:
- 2026-04-02
- OpenAlex record:
- View
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