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

Author

Listed:
  • Roberto Basile

    (ISAE)

  • Anna Giunta

    (University of Calabria)

  • Jeffrey B. Nugent

    (University of Southern California)

Abstract

This paper develops a foreign expansion index (FEI) of the firm which integrates various dimensions of commitment to internationalization, i.e. exports, foreign penetration operations and FDI. This study focuses on Italy, constructing FEIs for each of some 4,000 firms for three periods characterized by different exchange rate regimes. The determinants of FEI in each period are studied through the use of an ordered probit model. The findings suggest that: a) firm size, inter- firm relations, innovation capabilities, location and technology are all highly significant determinants of FEI, but their impact on the foreign expansion is influenced by the exchange rate regime.

Suggested Citation

  • Roberto Basile & Anna Giunta & Jeffrey B. Nugent, 2003. "Foreign Expansion by Italian Manufacturing Firms in the Nineties: an Ordered Probit Analysis," Industrial Organization 0312001, EconWPA.
  • Handle: RePEc:wpa:wuwpio:0312001
    Note: Type of Document - Word doc; pages: 26; figures: 1. None
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    References listed on IDEAS

    as
    1. Guido Nassimbeni & Alberto De Toni, 2000. "La propensione esportativa della piccola impresa: un confronto empirico tra unità esportatrici e non esportatrici," ECONOMIA E POLITICA INDUSTRIALE, FrancoAngeli Editore, vol. 2000(105).
    2. Michele Bagella & Leonardo Becchetti, 1999. "Effetto distretto e performance delle esportazioni sotto diversi regimi di cambio: analisi empirica e implicazioni per l'Euro," Politica economica, Società editrice il Mulino, issue 2, pages 225-252.
    3. Lall, Sanjaya, 1980. "Monopolistic Advantages and Foreign Involvement by U.S. Manufacturing Industry," Oxford Economic Papers, Oxford University Press, vol. 32(1), pages 102-122, March.
    4. Basile, Roberto, 2001. "Export behaviour of Italian manufacturing firms over the nineties: the role of innovation," Research Policy, Elsevier, vol. 30(8), pages 1185-1201, October.
    5. Lipsey, Robert E & Weiss, Merle Yahr, 1984. "Foreign Production and Exports of Individual Firms," The Review of Economics and Statistics, MIT Press, vol. 66(2), pages 304-308, May.
    6. Davide Castellani, 2002. "Export behavior and productivity growth: Evidence from Italian manufacturing firms," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 138(4), pages 605-628, December.
    7. Alessandro STERLACCHINI, 2000. "The determinants of export performance: A firmlevel study in Italian Manufacturing," Working Papers 142, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    8. Amemiya, Takeshi, 1981. "Qualitative Response Models: A Survey," Journal of Economic Literature, American Economic Association, vol. 19(4), pages 1483-1536, December.
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    10. Seev Hirsch & Ilan Bijaoui, 1985. "R&D intensity and export performance: A micro view," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 121(2), pages 238-251, June.
    11. Athukorala, Premachandra & Menon, Jayant, 1994. "Pricing to Market Behaviour and Exchange Rate Pass-Through in Japanese Exports," Economic Journal, Royal Economic Society, vol. 104(423), pages 271-281, March.
    12. Andrea Bonaccorsi, 1992. "On the Relationship Between Firm Size and Export Intensity," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 23(4), pages 605-635, December.
    13. Linsu Kim & Jeffrey B. Nugent & Seung-Jae Yhee, 1997. "Transaction Costs And Export Channels Of Small And Medium-Sized Enterprises: The Case Of Korea," Contemporary Economic Policy, Western Economic Association International, vol. 15(1), pages 104-120, January.
    14. Wakelin, Katharine, 1998. "Innovation and export behaviour at the firm level," Research Policy, Elsevier, vol. 26(7-8), pages 829-841, April.
    15. Feinberg, Robert M., 1992. "Hysteresis and export targeting," International Journal of Industrial Organization, Elsevier, vol. 10(4), pages 679-684, December.
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    More about this item

    Keywords

    firm behavior; international business; qualitative choice models;

    JEL classification:

    • L - Industrial Organization

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