Heterogeneous Enterprise Internationalization Path Selection

New-New trade theory is a research frontier of international trade.The mostimportant innovation of it is the heterogeneous firm hypothesis.Its main researchfields include firm's export and FDI decision and global production organizationdecision.The theory had showed the huge explanation capability to presentinternational trade and investment phenomena,and represented the future theorydevelopment orientation.Therefore it has great research theory value.Our country'spresent economic situation is that foreign trade,overseas investment and foreigndirect investment all gain fast development in the past 30 years,and especially theinternational trade has become our country's economic growth impetus andheadsprings.However,our country's reform and development step have reached therevolution and upgrade phase.How should our country's foreign trade developmentstrategy adjust and whether our firms should go abroad cosmically.These problemsare putting in front of us and needing resolving.In such circumstances,the paperbanded together the newest theory and real situation,used our country's practical datato test the theory and used the theory to guide the practice,mainly analyzed theinternational trade and investment adjustment orientation,concluded our firms'internationalization path selection and FDI entry mode selection.The main body andresearch results as follows.In the New-New trade theory literature summarization parts.We introduced fromthe early empirical papers,and mainly described two research clues.The first was thefirms' internationalization decision selection,which was how firms should chooseform export and foreign direct investment.The second clue was the firms' globalproduction organization selection,which was how firms should choose fromoutsourcing and integration.The parts summarized and contrasted related researchconclusions and methods.In the heterogeneous firms' export and its economic effects parts,the modelintroduced the hypothesis of information symmetric for firms,and got the conclusionsthat higher productivity firms choose export and lower productivity firms choose salein the country.And in the meanwhile,export influenced the firm productivitydubiously,but can improve the whole society productivity level.The empiricalresearch improved that our country's firm's data fit for theory conclusion.In the base of these,our export strategy should not be changed but should improve the quality andindustry structure.At last,we putted forward the"market orientation andnon-symmetry export promotion strategy",which advised our country to insist onmarket orientation free trade strategy,and encourage high technology industry toexport.In the heterogeneous firms' export and foreign direct investment decision parts,the model introduced the hypothesis of information symmetric for firms that theyknow whether they should entry the market and export or FDI.The conclusions werethat higher productivity firms would choose FDI and lower productivity firms wouldchoose export,and the relationship between export and FDI were substitute mosttimes.Our country firms' empirical analysis showed that the whole productivity levelwas not higher enough for firms to go abroad.So firms should make the export andFDI decision based on its own productivity level.In the heterogeneous firms' FDI entry mode selection parts,the model simplifiedthe present framework,and devoted to analyze firms' multinational merger andGreenfield investment decision.The conclusions showed that heterogeneity in themobile capability industry,higher productivity firms would choose mergers andacquisitions,and lower productivity firms would choose Greenfield investment.In theotherwise,heterogeneity in the non-mobile capability industry,higher productivityfirms would choose Greenfield investment,and lower productivity firms wouldchoose mergers and acquisitions.In the empirical analysis,we presented our country's30 years FDI situation and found out that FDI development level lagged the foreigntrade and economic growth,so we should develop gradually.In the FDI entry modeselection,technology intensive industries should choose mergers and acquisitions,andlabor intensive industries should choose Greenfield investment.In a word,the paper was a research of associate newest international trade theoryand china's practice.It extended and tested the theory,and instructed our country'sinternational and investment decision.But because of limited Chinese micro firm data,the paper needed further research and development.