Foreign Expansion by Italian Manufacturing Firms in the Nineties: an Ordered Probit Analysis

Foreign Expansion by Italian Manufacturing Firms in the Nineties: an Ordered Probit Analysis This paper develops an index of internationalizationcommitment or foreign expansion index(FEI) of the firm. The FEI integrates variousdimensions of commitment tointernationalization that, although interrelated,have usually been analyzed independently, i.e.exports, foreign penetration operations (suchas foreign commercial agreements, sales outletsabroad and so on) and FDI. Because of itsprominent inter-firm relationships andNorth-South discrepancies, this study focuseson Italy, constructing FEIs for each of some4,000 firms for three periods characterized bydifferent exchange rate regimes. Thedeterminants of FEI in each period are studiedat both the macro and micro levels, the latterthrough the use of an ordered probit model. Thefindings suggest that: (a) firm size,inter-firm relations, innovation capabilities,location and technology are all highly significantdeterminants of FEI, but their relative impacton the foreign expansion is influenced by theexchange rate regime; and (b) although still lowand especially so in the South, Italy's FEIshave risen somewhat during the 1990s. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Industrial Organization Springer Journals

Foreign Expansion by Italian Manufacturing Firms in the Nineties: an Ordered Probit Analysis

Loading next page...
 
/lp/springer_journal/foreign-expansion-by-italian-manufacturing-firms-in-the-nineties-an-G0nb7KyKtC
Publisher
Springer Journals
Copyright
Copyright © 2003 by Kluwer Academic Publishers
Subject
Economics; Industrial Organization; Microeconomics
ISSN
0889-938X
eISSN
1573-7160
D.O.I.
10.1023/B:REIO.0000005561.07176.30
Publisher site
See Article on Publisher Site

Abstract

This paper develops an index of internationalizationcommitment or foreign expansion index(FEI) of the firm. The FEI integrates variousdimensions of commitment tointernationalization that, although interrelated,have usually been analyzed independently, i.e.exports, foreign penetration operations (suchas foreign commercial agreements, sales outletsabroad and so on) and FDI. Because of itsprominent inter-firm relationships andNorth-South discrepancies, this study focuseson Italy, constructing FEIs for each of some4,000 firms for three periods characterized bydifferent exchange rate regimes. Thedeterminants of FEI in each period are studiedat both the macro and micro levels, the latterthrough the use of an ordered probit model. Thefindings suggest that: (a) firm size,inter-firm relations, innovation capabilities,location and technology are all highly significantdeterminants of FEI, but their relative impacton the foreign expansion is influenced by theexchange rate regime; and (b) although still lowand especially so in the South, Italy's FEIshave risen somewhat during the 1990s.

Journal

Review of Industrial OrganizationSpringer Journals

Published: Oct 4, 2004

References

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create lists to
organize your research

Export lists, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month

PDF Discount

20% off