Capital Endowment, Credit Constraint and FDI: Analysis Based on Heterogeneous Firms

To examine the impact of capital endowment and credit constraint on firms¡¯ FDI decisions, we build a model of investment portfolio based on heterogeneous firms setup. We find that financial factors matter for firms¡¯ internationalization. More capital endowment or less credit constraint lowers cutoff productivity for firms to do FDI.

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Year of publication:	2011
Authors:	Li, Junjiang ; Hou, Lei ; Zhang, Jiarui
Published in:	Frontiers of Economics in China. - Higher Education Press, ISSN 1673-3568. - Vol. 6.2011, 1, p. 55-75
Publisher:	Higher Education Press
Subject:	capital endowment \| credit constraint \| FDI \| heterogeneous firms \| productivity

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Extent:	application/pdf
Type of publication:	Article
Classification:	F23 - Multinational Firms; International Business ; G11 - Portfolio Choice ; G32 - Financing Policy; Capital and Ownership Structure
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010944959