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The Empirical Study of Heterogeneity Firm¡¯s Internationalization Path Selection

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Listed:
  • Weizhong Jiang
  • Xi Xie

Abstract

This article explores the heterogeneity firm¡¯s internationalization path selection by The New Trade Theory. Considering the firm¡¯s heterogeneity, based on the listed automobile company, do empirical study on three internationalization path selection which are Export, Foreign Direct Investment(FDI) and Outsourcing, considered five micro factors including productivity, R&D investment and other two macro factors, think of the scale of three internationalization path as explanatory variables, take the regression by weighted least square, principal components estimation, Panel Data Regression Model respectively and have a good goodness of fit. Combined with the national automobile firm¡¯s internationalization path selection, we build a comprehensive selection model of the firm¡¯s internationalization path selection, analyze the differential impact on the three path selection separately. Finally, we make suggestions to the national automobile firm¡¯s internationalization path selection and promote the model.

Suggested Citation

  • Weizhong Jiang & Xi Xie, 2016. "The Empirical Study of Heterogeneity Firm¡¯s Internationalization Path Selection," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(5), pages 95-110, May.
    • Handle: RePEc:ibn:ijefaa:v:8:y:2016:i:5:p:95-110
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    References listed on IDEAS

    as
    1. Volker Nocke & Stephen Yeaple, 2008. "An Assignment Theory of Foreign Direct Investment," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 75(2), pages 529-557.
    2. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
    3. Nocke, Volker & Yeaple, Stephen, 2007. "Cross-border mergers and acquisitions vs. greenfield foreign direct investment: The role of firm heterogeneity," Journal of International Economics, Elsevier, vol. 72(2), pages 336-365, July.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    weighted least square; principal components estimation; panel data; firm heterogeneity; internationalization path selection;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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