Skip to main content

Internationalization, Financial Incentives and Firm Growth: Evidence from Italy

  • Chapter
Firm-Level Internationalization, Regionalism and Globalization

Abstract

Internationalization has become increasingly important for the survival, growth and long-term viability of business organizations (Lu and Beamish, 2004; Shapiro, 1982; Wright and Ricks, 1994). An environment that supports firms’ internationalization and growth is indispensable for the success of domestic firms. From a national standpoint, the engagement of more companies in international business is regarded as an effective way of coping with the trade deficit problems and loss of competitiveness experienced by many developed and developing countries (Kokko, 2006).

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

eBook
USD 16.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 54.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Aggarwal, R. and Agmon, T. (1990) The international success of developing country firms: role of government-directed comparative advantage’, Management International Review, 30 (2), 163–80.

    Google Scholar 

  • Banerjee, A. and Newman, A. (2004) Inequality, Growth and Trade Policy, Working paper, MIT.

    Google Scholar 

  • Bartik, T.J. and Bingham, R.D. (1997) ‘Can economic development programs be evaluated?’, in R.D. Bingham and R. Mier (eds) Dilemmas of Urban Economic Development: Issue in Theory and Practice, 246–77 (Thousand Oaks, CA: Sage Publications).

    Google Scholar 

  • Bergstrom, F. (2000) ‘Capital subsidies and the performance of firms’, Small Business Economics, 14 (3), 183–93.

    Article  Google Scholar 

  • Blanes, J.V. and Busom, I. (2004) ‘Who participates in Ramp;D subsidy programs? The case of Spanish manufacturing firms’, Research Policy, 33 (10), 1459–76.

    Article  Google Scholar 

  • Blundell, R. and Costa Dias, M. (2000) ‘Evaluation methods for non-experimental data’, Fiscal Studies, 21 (4), 427–68.

    Article  Google Scholar 

  • Brewer, T. (1993) ‘Government policies, market imperfections and foreign direct investment’, Journal of International Business Studies, 24 (1), 101–20.

    Article  Google Scholar 

  • Brewer, T.L. and Young, S. (1997) ‘Investment incentives and the international agenda’, The World Economy, 20 (2), 175–98.

    Article  Google Scholar 

  • Buckley, P., Clegg, J., Cross, A.R., Liu, X., Voss, H. and Zheng, P. (2007) ‘The determinants of Chinese outward foreign direct investment’, Journal of International Business Studies, 38 (4), 499–518.

    Article  Google Scholar 

  • Buckley, P.J. and Ghauri, P.N. (2004) ‘Globalisation, economic geography and the strategy of multinational enterprises’, Journal of International Business Studies, 35 (2), 81–98.

    Article  Google Scholar 

  • Duran, J.J. and Ubeda, F. (2001) ‘The efficiency of government promotion for outward FDI: the intention to invest abroad’, Multinational Business Review, 9 (2), 24–32.

    Google Scholar 

  • European Commission (2003) ‘Observatory of European SMEs’, Internationalisation of SMEs

    Google Scholar 

  • Globerman, S. and Shapiro, D. (1999) ‘The impact of government policies on foreign direct investment: the Canadian experience’, Journal of International Business Studies, 30 (3), 513–32.

    Article  Google Scholar 

  • Gonzalez, X., Jaumandreu, J. and Pazó, C. (2005) ‘Barriers to innovation and subsidy effectiveness’, RAND Journal of Economics, 36 (4), 930–50.

    Google Scholar 

  • Guisinger, S. (1992) ‘Rhetoric and reality in international business: a note on the effectiveness of incentives’, Transnational Corporations, 1 (2), 111–23.

    Google Scholar 

  • Heckman, J.J. (1979) ‘Sample selection bias as a specification error’, Econometrica, 47 (1), 153–61.

    Article  Google Scholar 

  • Ishida, J. and Matsushima, N. (2008) Outward Foreign Direct Investment in a Unionized Oligopoly: Welfare and Policy Implications, OSIPP Discussion Paper No. 08E005.

    Google Scholar 

  • Kline, J.M. (2003) ‘Enhancing the development dimension of home country measures’, in UNCTAD (ed.) The Development Dimension of FDI: Policy and Rule Making Perspectives (New York and Geneva: United Nations), 101–14.

    Google Scholar 

  • Kokko, A. (2006) The Home Country Effects of FDI in Developed Economies, EIJS Working Paper Series 225, The European Institute of Japanese Studies.

    Google Scholar 

  • Kumar, N. (2007) ‘Emerging TNCs: trends, patterns and determinants of outward FDI by Indian enterprises’, Transnational Corporations, 16 (1), 1–26.

    Google Scholar 

  • Lee, M.J. (2005) Micro-Econometrics for Policy, Program, and Treatment Effects (New York: Oxford University Press).

    Book  Google Scholar 

  • Lenihan, H., Hart, M. and Roper, S. (2007) ‘Introduction to the special issue on industrial policy evaluation: theoretical foundations and empirical innovations: new wine in new bottles’, International Review of Applied Economics, 21 (3), 313–19.

    Article  Google Scholar 

  • Lim, S.H. (2005) ‘Foreign investment impact and incentive: a strategic approach to the relationship between the objectives of foreign investment policy and their promotion’, International Business Review, 14 (1), 61–76.

    Article  Google Scholar 

  • Lou, Y., Xue, Q. and Han, B. (2009) ‘How emerging market governments promote outward FDI: experience from China’, Journal of World Business, 45 (1), 68–79.

    Google Scholar 

  • Lu, J. and Beamish, P. (2004) ‘International diversification and firm performance: the S-curve hypothesis’, Academy of Management Journal, 47 (4), 598–609.

    Article  Google Scholar 

  • Maeseneire, W. and Claeys, T. (2007) SMEs, FDI and financial constraints, Vierick Leuven Gent Management School Working Paper Series 2007/25.

    Google Scholar 

  • Markusen, A. and Nesse, K. (2007) ‘Institutional and political determinants of incentive competition: reassessing causes, outcomes, remedies’, in A. Markusen (ed.) Reining in the Competition for Capital: International Perspective, 1–41 (Kalamazoo Michigan: Upjohn Institute for Employment Research).

    Chapter  Google Scholar 

  • Marschak, J. (1953) ‘Economic measurements for policy and prediction’, in W.C. Hood and T.C. Koopmans (eds) Studies in Econometric Method, Cowles Commission for Research in Economics, Monograph no. 14 (New York: Wiley).

    Google Scholar 

  • Moffit, R. (1991) ‘Program evaluation with non-experimental data’, Evaluation Review, 15 (3), 291–314.

    Article  Google Scholar 

  • Mosselman, M. and Prince, Y. (2004) Review of Methods to Measure the Effectiveness of State Aid to SMEs, Final Report to the European Commission (Brussels: EIM Business and Policy Research).

    Google Scholar 

  • OECD (2008) ‘China’s outward direct investment’, OECD Investment Policy Reviews: China 2008, Chapter 3 (Paris: OECD).

    Google Scholar 

  • Oxelheim, L. and Ghauri, P. (2004) European Union and the Race for Foreign Direct Investment in Europe (Oxford: Elsevier).

    Google Scholar 

  • Pradhan, J. (2004) ‘The determinants of outward foreign direct investment: a firm-level analysis of Indian manufacturing’, Oxford Development Studies, 32 (4), 619–39.

    Article  Google Scholar 

  • Sarmah, P. (2003) Home Country Measures and FDI: Implications for Host Country Development. Centre for Competition, Investment and Economic Regulation Monographs on Investment and Competition Policy (CUTS), 13, 0316.

    Google Scholar 

  • Shapiro, A. (1982) Multinational Financial Management (Boston: Allyn and Bacon).

    Google Scholar 

  • Shapiro, D. and Globerman, S. (2003) ‘Foreign investment policies and capital inflows in Canada: a sectoral analysis’, Journal of Business Research, 56 (10), 779–90.

    Article  Google Scholar 

  • Skuras, D. and Tzelepis, D. (2004) ‘The effects of regional capital subsidies on firm performance: an empirical study’, Journal of Small Business and Enterprise Development, 11 (1), 121–9.

    Article  Google Scholar 

  • Te Velde (2007) ‘Understanding developed country efforts to promote foreign direct investment to developing countries: the example of the United Kingdom’, Transnational Corporations, 16 (3), 83–104.

    Google Scholar 

  • United Nations Conference on Trade and Development (UNCTAD) (2001) Home Country Measures, UNCTAD International Investment Agreements Issues Paper Series (Geneva: United Nations Publication).

    Google Scholar 

  • Wallsten, S.J. (2000) ‘The effects of government-industry Ramp;D programs on private Ramp;D: the case of the small business innovation research program’, RAND Journal of Economics, 31 (1), 82–100.

    Article  Google Scholar 

  • Wright, W. and Ricks, A. (1994) ‘Trends in international business research: twenty-five years later’, Journal of International Business, 25 (4), 687–701.

    Article  Google Scholar 

  • Wright, M., Westhead, P. and Ucbasaran, D. (2007) ‘Internationalization of small and medium-sized enterprises (SMEs) and international entrepreneurship: a critique and policy implications’, Regional Studies, 41 (7), 1013–30.

    Article  Google Scholar 

  • Zaheer, S. (1995) ‘Overcoming the liability of foreignness’, Academy of Management Journal, 38 (2), 341–63.

    Article  Google Scholar 

Download references

Authors

Editor information

Editors and Affiliations

Copyright information

© 2011 Mariasole Bannò, Lucia Piscitello and Celeste Amorim Varum

About this chapter

Cite this chapter

Bannò, M., Piscitello, L., Varum, C.A. (2011). Internationalization, Financial Incentives and Firm Growth: Evidence from Italy. In: Hutson, E., Sinkovics, R.R., Berrill, J. (eds) Firm-Level Internationalization, Regionalism and Globalization. The Academy of International Business. Palgrave Macmillan, London. https://doi.org/10.1057/9780230305106_9

Download citation

Publish with us

Policies and ethics