Effects of foreign equity participation on recipient firm exports

De, Prabal K.; Nagaraj, Priya

doi:10.1080/00036846.2016.1254340

Cited by 2 publications

(6 citation statements)

References 25 publications

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“…The values are expressed in percentages. Such a definition of the dependent variable is present in nearly all micro‐level studies of foreign direct investment export effects (Barrios et al, 2003; De & Nagaraj, 2017; Kneller & Pisu, 2004). It is a better approach than using the absolute export values, as it is more consistent with underlying theoretical models and because it limits the biases due to outliers.…”

Section: Methodsmentioning

confidence: 99%

“…The majority of these studies show that foreign ownership positively affects manufacturing firms' export intensity or participation (Abor et al, 2008; Charoenrat & Amornkitvikai, 2022; Chen et al, 2013; Liu & Wang, 2022a). Notable exceptions with inconclusive results include studies by De and Nagaraj (2017), Ghosh and Roy (2018), and Mariotti and Marzano (2020). A study focusing on the services sector reports positive effects of foreign direct investment on export sophistication (Liu & Wang, 2022b).…”

Section: Literature Reviewmentioning

confidence: 99%

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Exporting decision of agricultural firms: The role of foreign direct investment

Kastratović

2023

Agribusiness

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In this study, we examine how foreign direct investment affects agricultural firms' exporting decisions. We investigate this by using a Tobit model of export intensity, estimated on the sample of 104 Serbian agricultural firms observed in the period 2014–2017. In particular, we considered both direct and indirect export effects of foreign direct investment. The results indicate that foreign ownership positively affects firms' export intensity. Furthermore, we find that the effect is conditional on the origin of foreign capital, the strongest effects being associated with capital coming from bordering countries. Finally, the results show that the indirect effects of foreign direct investment on export are mainly negative. The results imply that agricultural firms which are a part of the system of multinational enterprises have lower costs of exporting, due to their reliance on international distribution networks and the information on foreign markets provided by the parent companies. In contrast, the costs of production for the local firms could be increased due to the intensive competition by the foreign affiliates. This means that foreign direct investment has the potential to improve the export performances of host‐country agricultural firms. However, to realize their full potential, a sufficient absorptive capacity of the local firms is required. [EconLit Citations: F21, F23, Q17].

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Section: Methodsmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Exporting decision of agricultural firms: The role of foreign direct investment

Kastratović

2023

Agribusiness

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“…Rasiah and Gachino (2005) also found no evidence on significant export effects of foreign ownership in the case of Kenyan firms. Finally, De and Nagaraj (2017) found insignificant export effects for Indian firms with substantial foreign ownership (between 10% and 50%). However, their results provide evidence of positive results in the case of both minor and major foreign ownership, suggesting a possible non‐linear relationship between foreign ownership and firm exports.…”

Section: Review Of the Micro‐level Empirical Studiesmentioning

confidence: 99%

“…They all observe either individual firms or plants, depending on the data source. Namely, the older studies which rely on industry census data tend to use plants as the unit of the analysis (Aitken et al, 1997;Ramstetter, 1999), whereas the newer studies use the financial statements of firms (De & Nagaraj, 2017;Karpaty & Kneller, 2011). In both groups, the dependent variable of the empirical model is the firm export, which is operationalised in one of the three ways: as a dummy variable, export intensity, and export value.…”

Section: Review Of the Micro-level Empirical Studiesmentioning

confidence: 99%

“…As for the other two operationalisations, the export intensity is used more commonly, but some authors emphasise the importance of considering both options, as they have different interpretations (Chen, Sheng, & Findlay, 2013). Many studies, particularly those using Tobit‐type models, combine the dummy variable with one or both quantitative export variables to model firm‐level export decisions more accurately (Barrios, Görg, & Strobl, 2003; De & Nagaraj, 2017; Kneller & Pisu, 2007).…”

Section: Review Of the Micro‐level Empirical Studiesmentioning

confidence: 99%

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The impact of foreign direct investment on host country exports: A meta‐analysis

Kastratović

2020

World Economy

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In this paper, we present a synthesis of the literature examining the impact of foreign direct investment on host country exports. We reviewed and summarised 37 theoretical papers, 27 micro‐level empirical studies and analysed 627 specifications from 117 macro‐level empirical studies. In exploring the reasons behind the variations of the reported effects in the empirical literature, we applied meta‐regression methodology. Our results indicate that the existing empirical literature generally reports a positive impact of foreign direct investment on exports, especially in developing countries. The reported effects are sensitive to research design, model specification and the context of the research. No publication bias was detected in the sampled studies. Based on our results, we provide some avenues and guidelines for future research on this topic. Our results could also have some important implications for policymakers.

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Effects of foreign equity participation on recipient firm exports

Cited by 2 publications

References 25 publications

Exporting decision of agricultural firms: The role of foreign direct investment

Exporting decision of agricultural firms: The role of foreign direct investment

The impact of foreign direct investment on host country exports: A meta‐analysis

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