Soft Power in emerging economies: A partial least squares – structural equation modeling exploratory analysis of the effects on outward foreign direct investment

Ricardo E. Buitrago R., James Rajasekar, Jorge Luis Alcaraz Vargas

Research output: Contribution to journalArticlepeer-review

Abstract

This article discusses the linkage between Soft Power institutional conditions and their effects on inward foreign direct investment (IFDI) as a mediator of outward foreign direct investment (OFDI). We measured Soft Power through the use of selected indicators between 2016 and 2019. To evaluate the proposed Soft Power constructs and their relationship with IFDI – OFDI, we applied partial least squares – structural equation modeling (PLS-SEM) analysis. The model outcomes suggest that Government, Business, Culture, and Diplomacy conditions have a significant and positive effect on IFDI and OFDI. The findings are context-moderated due to the heterogeneity of the emerging economies evaluated.
Original languageEnglish
Pages (from-to)211-234
Number of pages24
JournalInternational Area Studies Review
Volume26
Issue number3
DOIs
Publication statusPublished - Sept 2023

Bibliographical note

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© The Author(s) 2023.

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