TY - BOOK
T1 - Internationalisation modes of European firms
AU - Békés, Gábor
AU - Muraközy, Balázs
PY - 2012
Y1 - 2012
N2 - This paper analyzes internationalization mode choices of European firms. Using survey data on three European countries, France, Italy and Spain, we find few differences between indirect exporters and non-exporters, while direct exporters and FDI conducting firms are significantly larger and more productive than non-exporters. Also, just about 3 percent of all firms or 5.5 percent of exporters exported only indirectly through domestic intermediaries. With a simple calibration of an international trade model in which heterogeneous firms choose between indirect exporting, direct exporting and FDI, we show that this pattern is in line with large fixed costs of direct exporting and FDI while the cost structure of indirect trade should consist either relatively large fixed or marginal cost. These observations suggest that sorting based on productivity do not describe well indirect traders. Furthermore, we find that features of firms and products such as innovative content will affect the trade mode choice- in line with theories of emphasizing contractual frictions.
AB - This paper analyzes internationalization mode choices of European firms. Using survey data on three European countries, France, Italy and Spain, we find few differences between indirect exporters and non-exporters, while direct exporters and FDI conducting firms are significantly larger and more productive than non-exporters. Also, just about 3 percent of all firms or 5.5 percent of exporters exported only indirectly through domestic intermediaries. With a simple calibration of an international trade model in which heterogeneous firms choose between indirect exporting, direct exporting and FDI, we show that this pattern is in line with large fixed costs of direct exporting and FDI while the cost structure of indirect trade should consist either relatively large fixed or marginal cost. These observations suggest that sorting based on productivity do not describe well indirect traders. Furthermore, we find that features of firms and products such as innovative content will affect the trade mode choice- in line with theories of emphasizing contractual frictions.
M3 - Book
T3 - EFIGE Working paper ; 52.
BT - Internationalisation modes of European firms
PB - Bruegel
CY - Brüsszel
ER -