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    Rights statement: This is the author’s version of a work that was accepted for publication in Journal of International Economics. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of International Economics, 99, 2016 DOI: 10.1016/j.jinteco.2015.12.004

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The internationalization process of firms: from exports to FDI

Research output: Contribution to journalJournal article

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The internationalization process of firms : from exports to FDI. / Conconi, Paola; Sapir, André; Zanardi, Maurizio.

In: Journal of International Economics, Vol. 99, 03.2016, p. 16-30.

Research output: Contribution to journalJournal article

Harvard

Conconi, P, Sapir, A & Zanardi, M 2016, 'The internationalization process of firms: from exports to FDI', Journal of International Economics, vol. 99, pp. 16-30. https://doi.org/10.1016/j.jinteco.2015.12.004

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Conconi, Paola ; Sapir, André ; Zanardi, Maurizio. / The internationalization process of firms : from exports to FDI. In: Journal of International Economics. 2016 ; Vol. 99. pp. 16-30.

Bibtex

@article{55a37849cf1449dc84df3e2a6ea95ee8,
title = "The internationalization process of firms: from exports to FDI",
abstract = "We examine how uncertainty affects firms' internationalization choices. We begin by unveiling a new empirical regularity: using a unique dataset that allows us to study the dynamics of firms' exports and foreign direct investments (FDI) in individual destinations, we show that most firms serve a market via exports before investing there. To rationalize this pattern, we describe a model in which firms are uncertain about their profitability in a foreign market and may experiment via exports before engaging in FDI. In line with this idea, we show that the probability that a firm starts investing in a foreign country increases with its export experience in that country. In more uncertain destinations, firms delay FDI entry, experimenting longer with exports before establishing foreign affiliates.",
keywords = "Exports, FDi, Uncertainty, Experimentation",
author = "Paola Conconi and Andr{\'e} Sapir and Maurizio Zanardi",
note = "This is the author{\textquoteright}s version of a work that was accepted for publication in Journal of International Economics. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of International Economics, 99, 2016 DOI: 10.1016/j.jinteco.2015.12.004",
year = "2016",
month = mar
doi = "10.1016/j.jinteco.2015.12.004",
language = "English",
volume = "99",
pages = "16--30",
journal = "Journal of International Economics",
issn = "0022-1996",
publisher = "Elsevier",

}

RIS

TY - JOUR

T1 - The internationalization process of firms

T2 - from exports to FDI

AU - Conconi, Paola

AU - Sapir, André

AU - Zanardi, Maurizio

N1 - This is the author’s version of a work that was accepted for publication in Journal of International Economics. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of International Economics, 99, 2016 DOI: 10.1016/j.jinteco.2015.12.004

PY - 2016/3

Y1 - 2016/3

N2 - We examine how uncertainty affects firms' internationalization choices. We begin by unveiling a new empirical regularity: using a unique dataset that allows us to study the dynamics of firms' exports and foreign direct investments (FDI) in individual destinations, we show that most firms serve a market via exports before investing there. To rationalize this pattern, we describe a model in which firms are uncertain about their profitability in a foreign market and may experiment via exports before engaging in FDI. In line with this idea, we show that the probability that a firm starts investing in a foreign country increases with its export experience in that country. In more uncertain destinations, firms delay FDI entry, experimenting longer with exports before establishing foreign affiliates.

AB - We examine how uncertainty affects firms' internationalization choices. We begin by unveiling a new empirical regularity: using a unique dataset that allows us to study the dynamics of firms' exports and foreign direct investments (FDI) in individual destinations, we show that most firms serve a market via exports before investing there. To rationalize this pattern, we describe a model in which firms are uncertain about their profitability in a foreign market and may experiment via exports before engaging in FDI. In line with this idea, we show that the probability that a firm starts investing in a foreign country increases with its export experience in that country. In more uncertain destinations, firms delay FDI entry, experimenting longer with exports before establishing foreign affiliates.

KW - Exports

KW - FDi

KW - Uncertainty

KW - Experimentation

U2 - 10.1016/j.jinteco.2015.12.004

DO - 10.1016/j.jinteco.2015.12.004

M3 - Journal article

VL - 99

SP - 16

EP - 30

JO - Journal of International Economics

JF - Journal of International Economics

SN - 0022-1996

ER -