What the study found
The study found that colonial ties and African cultural proximity are positively associated with both greenfield investment and cross-border mergers and acquisitions in outward foreign direct investment from Arab Maghreb Union countries. It also found that Arab cultural proximity and host-country market size are 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 outward investment behavior of emerging-market multinationals. They also suggest that shared history and cultural ties may be relevant for attracting investment from Arab Maghreb Union countries, with different strategies needed 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 a Generalized Method of Moments analysis 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 and African cultural proximity were positively associated with both types of investment. Arab cultural proximity and host-country market size were associated only with greenfield investments, not with cross-border mergers and acquisitions. The estimated coefficients were larger for greenfield investments than for cross-border mergers and acquisitions, and this pattern held across baseline estimations and robustness checks.
What to keep in mind
The summary does not describe limits beyond the study's focus on Arab Maghreb Union outward foreign direct investment and the 2004 to 2022 period. It also reports associations from a transaction-based panel analysis, so the abstract does not state causal conclusions.
Key points
- Colonial ties were the strongest factor reported in the abstract.
- African cultural proximity was positively associated with both greenfield investments and cross-border mergers and acquisitions.
- Arab cultural proximity and host-country market size were linked only to greenfield investments.
- The reported effects were larger for greenfield investments than for cross-border mergers and acquisitions.
- The pattern was consistent across baseline estimations and robustness checks.
Disclosure
- Research title:
- Colonial ties and African cultural proximity shape outward investment patterns
- Authors:
- Mohammed Amine, Jalal Eddine Liassini, Aymane Chemmaa, Mohamed FLAH, Mohammed Ibrahimi
- Institutions:
- English Institute of Sport, University of Hassan II Casablanca, University of Hassan II Casablanca, University of Hassan II Casablanca, University of Hassan II Casablanca
- Publication date:
- 2026-04-02
- OpenAlex record:
- View
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