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Internationalization choices and Italian firm performance during the crisis

Author

Listed:
  • Stefano Costa

    (ISTAT, Italian National Institute of Statistics)

  • Carmine Pappalardo

    (UPB, Parliamentary Budget Office)

  • Claudio Vicarelli

    () (ISTAT, Italian National Institute of Statistics)

Abstract

Abstract We focus on the relationship between internationalization choices and performance of Italian firms during the first period of the financial crisis (2007–2010). Making use of a new firm-level database, we build a six-class taxonomy of firms’ internationalization activities; then we estimate firms’ performance as a function of internationalization forms, also estimating propensity score and Heckman selection models in order to control for endogeneity and sample selection bias. Over the period 2007–2010, Italian firms moved (on average) towards more complex forms of internationalization. Empirical analysis finds that these upward changes are related with positive effects on firms’ (labour) productivity, also in a period characterized by the 2009 trade collapse. These findings put additional emphasis on the issue of the diversification of both products and markets as a goal to be pursued by firms, even in times of crisis, to remain competitive and make profits.

Suggested Citation

  • Stefano Costa & Carmine Pappalardo & Claudio Vicarelli, 2017. "Internationalization choices and Italian firm performance during the crisis," Small Business Economics, Springer, vol. 48(3), pages 753-769, March.
  • Handle: RePEc:kap:sbusec:v:48:y:2017:i:3:d:10.1007_s11187-016-9799-5
    DOI: 10.1007/s11187-016-9799-5
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    References listed on IDEAS

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    More about this item

    Keywords

    Heterogeneous firms; Internationalization; Firm productivity; Financial crisis; Heckman model;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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