Capital endowment, credit constraint and FDI: Analysis based on heterogeneous firms

Li Junjiang; Lei Hou; Jiarui Zhang

doi:10.1007/s11459-011-0122-8

Capital endowment, credit constraint and FDI: Analysis based on heterogeneous firms

Li Junjiang
, Lei Hou
, Jiarui Zhang

Research output: Journal Publication › Article › peer-review

1 Citation (Scopus)

Abstract

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.

Original language	English
Pages (from-to)	55-75
Number of pages	21
Journal	Frontiers of Economics in China
Volume	6
Issue number	1
DOIs	https://doi.org/10.1007/s11459-011-0122-8
Publication status	Published - Mar 2011
Externally published	Yes

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth

Free Keywords

FDI
capital endowment
credit constraint
heterogeneous firms
productivity

ASJC Scopus subject areas

Economics and Econometrics

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10.1007/s11459-011-0122-8

Cite this

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title = "Capital endowment, credit constraint and FDI: Analysis based on heterogeneous firms",

abstract = "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.",

keywords = "FDI, capital endowment, credit constraint, heterogeneous firms, productivity",

author = "Li Junjiang and Lei Hou and Jiarui Zhang",

note = "Funding Information: Acknowledgements Lei Hou gratefully acknowledges funding under Bavarian Elite Aid Act (Bayerischen Elitef{\"o}rderungsgesetz, BayEFG) program. Jiarui Zhang thanks funding under China Scholarship Council. For helpful discussions, we thank the participants of International Economics Workshop, Macro Seminar and IO \& Finance Seminar at University of Munich, Germany. Special thanks to Prof. Dr. Dalia Marin, Prof. Dr. Gerhard Illing, Prof. Dr. Monika Schnitzer, and Dr. Alexander Tarasov for their insightful comments. We also thank the two referees for their comments and suggestions.",

year = "2011",

month = mar,

doi = "10.1007/s11459-011-0122-8",

language = "English",

volume = "6",

pages = "55--75",

journal = "Frontiers of Economics in China",

issn = "1673-3444",

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AU - Hou, Lei

AU - Zhang, Jiarui

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PY - 2011/3

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N2 - 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.

AB - 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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KW - credit constraint

KW - heterogeneous firms

KW - productivity

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ER -

Capital endowment, credit constraint and FDI: Analysis based on heterogeneous firms

Abstract

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ASJC Scopus subject areas

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