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Firm heterogeneity, exporting and foreign direct investment

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  • David Greenaway
  • Richard Kneller

Abstract

A rapidly expanding literature on firm heterogeneity and firm level globalisation strategies has developed over the last decade. There are new insights on why some firms export and others do not, why some firms fail to survive in export markets and some choose to produce overseas rather than export. This article provides a synthesis and evaluation of this literature. It reviews both new theories of firms in an open economy context and the extensive microeconometric evidence base, which has now developed. It highlights the implications of this evidence base for policy and includes an assessment of how the research agenda may evolve. Copyright 2007 The Author(s). Journal compilation Royal Economic Society 2007.

Suggested Citation

  • David Greenaway & Richard Kneller, 2007. "Firm heterogeneity, exporting and foreign direct investment," Economic Journal, Royal Economic Society, vol. 117(517), pages 134-161, February.
    • Handle: RePEc:ecj:econjl:v:117:y:2007:i:517:p:f134-f161
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