The Dynamic Mechanism And Path Choosing Of The Heterogeneous Firms' International Transference

With the increasing of globalization, which has the characteristics of deepening of labor division and industry transference, the firms increasingly frequent international transference activities. But in recent years, the trade practice shows that the international transference activities is actually a relatively rare firm behavior. Not all firms are participating into international trade and international transfers. Even if the firms participate into the international trade, they will choose the different modes of export, outsourcing, FDI and so on. For discussion of this issue, whether the traditional trade theory or new trade theory can not draw a convincing conclusion. However, the new-new trade theory under the hypothesis of heterogeneous just to meet the new trade practices and effectively explains the heterogeneous firms' international transfer cause and path.Refering to the latest achievement of the new-new trade theory in this field, this paper introduced the New Economic Geography (NEG) model into the classical analysis framework of Heterogeneous-firms Trade Models (HFT), abandoned the hypothesis of unknowable marginal cost, measured the difference of productivity through marginal cost, as a result worked and expanded the HFT and NEG model.And then this paper focused on the heterogeneous firms why and how to transfer.Through equilibrium analysis of the model, we find that the marginal cost of firms in different countries, result in the heterogeneity of its productivity and further lead to the firms' international transference.This paper shows that the heterogeneous firms' productivity bring international transference to firms in bidirectional way is different with the existing research. So that the productivity would influence firms'choices on transference paths of FDI, exportation and so on. In this process, higher productivity firms choose to Green FDI will have the most to gain from moving, and regardless of the level of productivity firms choose to cross-border M&A will make more profitable for the aborad. Meanwhile, this paper went on with the work of verifing the application of the result of the model toward the reality using the vocational panel of our country's 28 manufacture industries and proposed several advices on firms' bidirectional transference policy in China. At last, this paper expect this to promote the "internal and external balance" development of the firms'international transference.