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Impact of regional trade dependence on firm internationalization

Author

Listed:
  • Bi, Chunxiao
  • Xie, Wenkai
  • Yin, Junjie

Abstract

The impact of regional trade dependence on the speed of firm internationalization was examined using panel data of Chinese A-share listed firms from 2012 to 2023. Notably, firms’ higher trade dependence significantly accelerated their internationalization, with firm agility and capital deepening identified as partial mediators. Further analysis revealed an inverted U-shaped effect, indicating diminishing marginal benefits, and significant diminishing marginal benefits and significant heterogeneity across different internationalization levels. These findings help understand how regional openness shapes firm strategies and provide empirical guidance for differentiated policy support in promoting internationalization.

Suggested Citation

  • Bi, Chunxiao & Xie, Wenkai & Yin, Junjie, 2026. "Impact of regional trade dependence on firm internationalization," Finance Research Letters, Elsevier, vol. 88(C).
    • Handle: RePEc:eee:finlet:v:88:y:2026:i:c:s1544612325021798
    DOI: 10.1016/j.frl.2025.108926
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