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.
ContributorsLaura 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
About the Author
Sjoerd Beugelsdijk is Professor of International Business at the University of Groningen, the Netherlands.
Steven Brakman is Professor of International Economics at the University of Groningen.
Hans van Ees is Professor of Global Economics and Management at the University of Groningen.
Harry Garretsen is Professor of International Economics and Business at the University of Groningen.
Erdal Yalcin is Deputy Director of the ifo Center for International Economics.
Clemens Fuest is Research Director of the Oxford University Centre for Business Taxation and Professor of Business Taxation at Oxford's Saïd Business School.
Table of Contents
Series Foreword vii
Introduction: Firm Heterogeneity, International Economics, and International Business 1
I Firm-Specific Advantages 21
1 International Business Theory for International Economists Alan M. Rugman Quyen T. K. Nguyen 23
2 Exports versus Foreign Direct Investments: Evidence from Cross-Country Industry Data Filomena Pietrovito Alberto Franco Pozzolo Luca Salvatici 55
3 Managerial Characteristics and the Export Decision of Firms Davide Sala Erdal Yalcin 91
II Firm-Environment Interaction 125
4 Foreign Firms and Local Communities Bruce Blonigen Cheyney O'Fallon 127
5 Institutional Quality and FDI to the South Julia Darby Rodolphe Desbordes Ian Wooton 153
6 Heterogeneous Export Spillovers to Chinese Domestic Firms: The Role of the Difficulty to Enter the Destination Market Florian Mayneris Sandra Poncet 173
III Boundaries of the Firm 203
7 Intrafirm and Arm's-Length Trade: How Distance Matters Pamela Bombarda 205
8 Make or Buy: On the Organizational Structure of Firms with Asymmetric Suppliers Verena Nowak Christian Schwarz Jens Suedekum 241
9 Global Value Chains during the Great Trade Collapse: A Bullwhip Effect? Carlo Altomonte Filippo Di Mauro Gianmarco Ottaviano Armando Rungi Vincent Vicard 277
IV Innovation and Technology Transfer 309
10 Multinationals' Technology Transfers and Firms' Performance María García-Vega Elena Huergo 311
11 Innovation Offshoring and Inventor Substitution Roger Smeets Laura Abramovsky 335
12 Heterogeneous Firms, Trade, and Economic Policy: Insights from a Simple Two-Sector Model Michael Pflüger Stephan Russek 369
List of Contributors 399