19.11.10 Firm Heterogeneity, International Cooperations and Export Participation
NUPI-notat 781 | 31 sider.
The paper investigates the relationship between firms’ international cooperation strategies and export decision, and analyses the empirical relevance of a model of firm heterogeneity and export by using a new survey dataset on Norwegian firms in the service sectors in the period 2004-2006.
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The paper investigates the relationship between firms’ international cooperation strategies and export decision. It proposes a refinement of Melitz (2003) model of firm heterogeneity and trade according to which prospective exporters must engage in a cooperation agreement with a foreign partner in order to favour their market access and distribution activities overseas. The paper analyses the empirical relevance of this model by means of a new survey dataset providing information on the internationalization activities of 814 Norwegian firms in the service sectors for the period 2004-2006. The econometric results point out that international cooperation, both on existing and on innovative products, is indeed an important factor to foster the firms’ decision to enter the export market.
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