Do RTAs'Movement of Capital Provisions Promote Firm's Internationalization Level?—Evidence from China's Listed Firms
With the comprehensive implementation of the"Going Global"strategy and the Belt and Road Initiative,China's enterprises are accelerating their pace of internationalization.Increasingly,China's companies are actively participat-ing in international market competition,achieving remarkable results in resource acquisition and technological advancement.However,during this process,China's enterprises still face high rates of investment failure and low internationalization perfor-mance.In the context of profound global adjustments and institutional openness clashes,exploring how Chinese enterprises can"Going global"more effectively and quickly holds significant theoretical and practical implications.From the perspective of institutional factors,this paper constructs a firm-level"Movement of Capital Provisions Index"based on the textual information of Regional Trade Agreements(RTAs)from the World Bank's Deep Trade Agreement data-base,the CEPII-BACI database,and the China Customs database.Using panel Probit models and Heckman two-stage models,the paper examines the impact of deep trade agreement topics,specifically movement of capital provisions,on the international-ization of China's listed companies.The study finds that the"Movement of Capital Provisions Index"significantly increases the probability of China's firms establishing overseas subsidiaries.Mechanism analysis from the cost and benefit perspectives reveals that RTAs'Movement of Capital Provisions offer confidence incentives for firms from a potential benefits perspective and reduce the risk and risk per-ception of foreign direct investment from a cost perspective,thereby promoting corporate internationalization.Heterogeneity analysis shows that the internationalization-promoting effect of the"Movement of Capital Provisions Index"is concentrated in firms without female core executives,non-state-owned enterprises,and industries with high sunk costs.Additionally,in firms without female core executives,RTAs'movement of capital provisions have a certain negative impact on the survival rate of overseas subsidiaries.However,this negative impact disappears when firms have female core executives,highlighting the im-portance of female core executives in corporate internationalization.This research enriches the theories related to corporate foreign direct investment and provides valuable references for fur-ther promoting the internationalization of Chinese enterprises.
RTAsMovement of Capital ProvisionsEnterprise InternationalizationOverseas Subsidiaries
万方数据
