MIB Seminar by Dr Angelo Solarino

Abstract: In recent years, populist movements have arisen around the Globe, influencing the public debate ad, on certain occasions, gaining a majority in national elections and governing countries. While scholars have debated on the impact populist movements and politicians have on politics and international relationships, the impact on trade and business relationships following the affirmation of populism still deserves attention. Building on a signalling theory perspective, in this paper, we aim to assess how the rise of populism affected FDI investments across countries. We first discuss populism as a social movement and then how populism affects the decision-making of MNEs with regard to their FDI decision. Through three separate studies at subnational, national, and global levels, using different samples and methodologies, we find a significant impact populism has on FDI decisions. Our paper shows that while “populism” as a construct negatively affects FDIs, not all its components have the same negative effect. Anti-elitism and homogeneity of people deter FDIs, while the desire of the people for more sovereignty has a positive effect on FDIs. We discuss the implications of our findings in the conclusions together with future research directions. 

Biography: Associate Professor in Strategy and Innovation, Angelo Solarino specialises in corporate governance and international business. His research examines how board structure and dynamics influence firm strategy and innovation, how the relationship among multiple large shareholders shapes firm outcomes, how companies can perform better in the international markets and where they should locate and structure they innovation activities. His research aims to improve the governance of the firm and create more competitive firms.