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Institutions and firms’ internationalization: an empirical analysis on three Middle East countries

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  • Nadine Levratto
  • Clarisse Nguedam Ntouko
  • Maarouf Ramadan

Abstract

On the basis of a broad definition of firms’ internationalization, this paper provides an empirical analysis of this question using a two-stage model, which first estimates the determinants of international commitment and the factors explaining the different types of internationalization strategies. The empirical analysis relies on firms’ individual data covering three countries (Jordan, Lebanon and Turkey) in 2013. We show that the probability of being internationalized and internationalization types depend on a combination of factors such as firms’ characteristics, access to finance and institutional framework. The determinants of internationalization as well as the number and types of internationalizations are heterogeneous depending firms' size and sectors in which they operate.

Suggested Citation

  • Nadine Levratto & Clarisse Nguedam Ntouko & Maarouf Ramadan, 2017. "Institutions and firms’ internationalization: an empirical analysis on three Middle East countries," EconomiX Working Papers 2017-37, University of Paris Nanterre, EconomiX.
    • Handle: RePEc:drm:wpaper:2017-37
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    More about this item

    Keywords

    Firms' internationalization; Institutions; Business climate; Middle East and North Africa (MENA);
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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