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Early International Entrepreneurship in China: Extent and Determinants

  • Naude, Wim
  • Rossouw, Stephanie

We use data on 3,948 Chinese firms obtained from the World Bank.s Investment Climate Private Enterprise Survey to investigate early international entrepreneurship (international new ventures) in China. The extent of early international entrepreneurship in China is significant: 65 per cent of the exporting firms start export operations within three years. Foreign shareholders within the firm and an entrepreneur with previous exporting experience are noted to significantly increase the probability that a firm internationalizes early. However, we find marked differences in the behaviour of indigenous and foreign-invested firms. Thus, while business networks are significant for firms wishing to export indirectly and for older indigenous firms, it is noted to delay the internationalization process of indigenous firms. Also, for an indigenous firm, the greater the foreign experience of its entrepreneur, the less likely it is to start exporting early.

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File URL: http://www.wider.unu.edu/stc/repec/pdfs/rp2009/RP2009-16.pdf
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Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number UNU-WIDER Research Paper RP2009/16.

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Length: 27
Date of creation: 2009
Date of revision:
Handle: RePEc:unu:wpaper:rp2009-16
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