The ladder of internationalization modes: evidence from European firms
How do firms enter international markets? To answer this question, this paper uses a unique multi-country firm-level dataset which, besides direct exporting and FDI, provides explicit information on a number of internationalization modes: indirect exporting, outsourced manufacturing and service FDI....
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Veröffentlicht in: | Review of world economics 2018-08, Vol.154 (3), p.455-491 |
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description | How do firms enter international markets? To answer this question, this paper uses a unique multi-country firm-level dataset which, besides direct exporting and FDI, provides explicit information on a number of internationalization modes: indirect exporting, outsourced manufacturing and service FDI. We present a theoretical framework in which modes requiring higher and higher commitment have progressively higher fixed and lower marginal costs. By estimating multinomial and ordered logit models, we present evidence in line with such a sorting framework with respect to TFP and innovativeness. We identify three 'clusters' of modes: indirect exporters are similar to non-exporters, direct exporters and outsourced manufacturers constitute a second cluster while service and manufacturing FDI are the most demanding internationalization modes. |
doi_str_mv | 10.1007/s10290-018-0305-9 |
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source | Jstor Complete Legacy; PAIS Index; SpringerLink Journals - AutoHoldings; EBSCOhost Business Source Complete |
subjects | Companies Economic models Economic Policy Economic theory Economics Economics and Finance European Integration Exports Foreign investment Global economy Globalization International Economics International markets Macroeconomics/Monetary Economics//Financial Economics Manufacturing Marginal costs Markets Original Paper Outsourcing |
title | The ladder of internationalization modes: evidence from European firms |
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