Cover image for Firms in the international economy : firm heterogeneity meets international business
Title:
Firms in the international economy : firm heterogeneity meets international business
Series:
CESifo seminar series
Publication Information:
Cambridge, Massachusetts : The MIT Press, 2013
Physical Description:
vi, 432 pages : illustrations ; 24 cm.
ISBN:
9780262019743

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30000010345030 HD2755.5 F573 2013 Open Access Book Book
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Summary

Summary

Essays by leading scholars suggest that insights from international business could enrich firm heterogeneity research in international economics.

Despite their common roots, international economics (IE) and international business (IB) have developed into two distinct fields of study. Economists have directed their efforts at formalizing the workings of international trade and investment at the macroeconomic level; business scholars have relied more on data-driven conceptual narratives than mathematical tools. But the recent focus of IE literature on firm heterogeneity suggests that IE would benefit from IB analyses of the behavior and organization of the internationalizing firm. The contributions to this volume investigate ways that insights from IB can enrich IE research in firm heterogeneity.

The contributors discuss firm-specific advantages in international trade and investment, considering the firm as the unit of analysis and managerial inputs as a variable in market entry decisions; analyze interactions between a firm and its external environment, including local corporate philanthropy and institutional settings; examine the boundaries of the firm and organizational choices such as the make-or-buy decision; and investigate technology transfer and innovation offshoring, discussing the role of subsidiaries, inventor employment, and other related topics.

Although IE and IB look at international firms from different perspectives, these contributions make it clear that there is a potential for a productive exchange of insights and information between the two disciplines.

Contributors
Laura Abramovsky, Carlo Altomonte, Sjoerd Beugelsdijk, Bruce Blonigen, Pamela Bombarda, Steven Brakman, Julia Darby, Rodolphe Desbordes, Filippo Di Mauro, María García-Vega, Harry Garretsen, Elena Huergo, Florian Mayneris, Quyen T. K. Nguyen, Verena Nowak, Cheyney O'Fallon, Gianmarco Ottaviano, Michael Pflüger, Filomena Pietrovito, Sandra Poncet, Alberto Franco Pozzolo, Alan M. Rugman, Armando Rungi, Stephan Russek, Davide Sala, Luca Salvatici, Christian Schwarz, Roger Smeets, Jens Suedekum, Hans van Ees, Vincent Vicard, Ian Wooton, Erdal Yalcin


Author Notes

Sjoerd Beugelsdijk is Professor of International Business at the University of Groningen, the Netherlands.


Table of Contents

Alan M. Rugman and Quyen T. K. NguyenFilomena Pietrovito and Alberto Franco Pozzolo and Luca SalvaticiDavide Sala and Erdal YalcinBruce Blonigen and Cheyney O'FallonJulia Darby and Rodolphe Desbordes and Ian WootonFlorian Mayneris and Sandra PoncetPamela BombardaVerena Nowak and Christian Schwarz and Jens SuedekumCarlo Altomonte and Filippo Di Mauro and Gianmarco Ottaviano and Armando Rungi and Vincent VicardMaría García-Vega and Elena HuergoRoger Smeets and Laura AbramovskyMichael Pflüger and Stephan Russek
Series Forewordp. vii
Introduction: Firm Heterogeneity, International Economics, and International Businessp. 1
I Firm-Specific Advantagesp. 21
1 International Business Theory for International Economistsp. 23
2 Exports versus Foreign Direct Investments: Evidence from Cross-Country Industry Datap. 55
3 Managerial Characteristics and the Export Decision of Firmsp. 91
II Firm-Environment Interactionp. 125
4 Foreign Firms and Local Communitiesp. 127
5 Institutional Quality and FDI to the Southp. 153
6 Heterogeneous Export Spillovers to Chinese Domestic Firms: The Role of the Difficulty to Enter the Destination Marketp. 173
III Boundaries of the Firmp. 203
7 Intrafirm and Arm's-Length Trade: How Distance Mattersp. 205
8 Make or Buy: On the Organizational Structure of Firms with Asymmetric Suppliersp. 241
9 Global Value Chains during the Great Trade Collapse: A Bullwhip Effect?p. 277
IV Innovation and Technology Transferp. 309
10 Multinationals' Technology Transfers and Firms' Performancep. 311
11 Innovation Offshoring and Inventor Substitutionp. 335
12 Heterogeneous Firms, Trade, and Economic Policy: Insights from a Simple Two-Sector Modelp. 369
List of Contributorsp. 399
Indexp. 401