Productivity and Chinese enterprises’ internationalization model: evidence from micro-level enterprises
(2.School of Economics, Nankai University)
【Abstract】This paper studies whether the productivity and internationalization model selection of Chinese firms comply with the new trade theory. By matching the Directory of Foreign Direct Investment Enterprises (Institutions) with the Chinese Industrial Enterprises Database through the Kolmogorov–Smirnov test, this paper finds that productivity of foreign investment enterprises, export enterprises and non-export enterprises is not completely in line with the new trade theory. There is a “productivity paradox” for export enterprises. Afterwards, based on the multivariate logit regression model, the paper studies the impact of productivity on enterprise’s internationalization model selection and finds that productivity is an important promoting factor for enterprises to invest abroad, but it is not beneficial to export enterprises. Further, this paper explains and verifies the “productivity paradox” of export enterprises from the perspective of export density.
【Keywords】 TFP; internationalization model; export; OFDI;
(Translated by LIU Yang)
. 1 Due to the limitation of space, this regression result is not listed in the table. Please contact the author if needed. (same for the results in Table 3). [^Back]
. 2 What is worth mentioning is that these regression results uniformly define those foreign investment enterprises with the export volume larger than zero as foreign investment enterprises. After matching, the data reveal that one third of the foreign investment enterprises have the export volume of larger than zero. For the sake of the robustness of the results, this paper has removed those foreign investment enterprises which practice export, only to find that the results have not changed too much and the same conclusion is drawn. Due to the limit of space, those regression results are not listed here. Please contact the author if needed. [^Back]
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