Improving firm survival: exports or outward foreign direct investment?

Firm survival matters not only for the development of firms, but also for industrial development and macro-economic growth. This paper aims to explore a far less studied issue: the impact of exports and outward foreign direct investment (OFDI) on firm survival. First, this research explores the impa...

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Publicado en:Post-Communist Economies Vol. 32; no. 5; pp. 675 - 697
Autores principales: Dai, Meihong, Li, Ben
Formato: Artículo
Publicado: Taylor & Francis Ltd Jun2020
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        10.1080/14631377.2019.1678097
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        atl: Improving firm survival: exports or outward foreign direct investment?
      aug:
        au:
          Dai, Meihong
          Li, Ben
        affil:
          Economics School, Dongbei University of Finance and Economics, Dalian City, Liaoning Province, China
          Jiangsu Institute for Industrial Development Studies, Nanjing University of Finance and Economics, Nanjing City, Jiangsu Province, China
      su:
        China
        Industrialization
        Foreign investments
        Propensity score matching
        Exports
      sug:
        subj:
          Industrialization
          China
          Administration of General Economic Programs
          International Trade Financing
          Foreign investments
          Propensity score matching
          Exports
      keyword:
        exports
        Firm
        outward foreign direct investment
        survival
        exports
        Firm
        outward foreign direct investment
        survival
      ab: Firm survival matters not only for the development of firms, but also for industrial development and macro-economic growth. This paper aims to explore a far less studied issue: the impact of exports and outward foreign direct investment (OFDI) on firm survival. First, this research explores the impact of pure-exports, pure-OFDI and mixed trade on firm survival based on a heterogeneous firm model with dynamic conditions. Second, this research demonstrates the theoretical hypothesis by employing micro-data from China and the multiple propensity score matching method. The results indicate that both exports and OFDI help improve firm survival, though the impact of pure-OFDI is larger. This conclusion is robust across different matching algorithms, research periods and empirical methods. The heterogeneous analysis indicates that the 'exports/OFDI–firm survival' relationship varies across both firm and economic characteristics. This research aims to guide firms' optimal method of internationalisation and provide suggestions for the development of a new opening-up pattern.
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      doctype: Article
      src: R
    language: English
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