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
Hauptverfasser: Békés, Gábor, Muraközy, Balázs
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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.
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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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