This paper examines how export experience affects firms'OFDI decisions from the microscopic perspective.The theoretical model shows that enterprises use export experience to reduce information friction and thus lower the OFDI threshold.This paper matches export trade and OFDI data of Chinese listed firms from 2000 to 2017,and the empirical evidence shows that:export experience improves the probability of firms'direct investment in host countries;export experience is more effective in the situation where firms need more market information:export experience can not only promote trade-type,R&D-type and greenfield investment but also has a significant effect on private firms;after excluding the alternative motivations of transportation cost and trade risk avoidance,the information effect can be demonstrated as the mechanism.This paper provides inspiration for utilizing China's export advantages to reduce the risk of firms'OFDI and improve their resilience to internationalization.
Export ExperienceOutward Foreign Direct InvestmentMarket EntryInformation Effect
万方数据
维普
