nep-iaf New Economics Papers
on International Activities of Firms
Issue of 2025–09–29
two papers chosen by
Joachim Wagner, Leuphana Universität


  1. International trade of african firms: explaining export participation and intensity By Adjiaratou Diakher Dianko
  2. The Dynamics of Technology Transfer: Multinational Investment in China and Rising Global Competition By Jaedo Choi; George Cui; Younghun Shim; Yongseok Shin

  1. By: Adjiaratou Diakher Dianko (UCAD - Université Cheikh Anta Diop de Dakar [Sénégal])
    Abstract: International trade offers significant gains for enterprise development, particularly in terms of technology transfer, increased income and job creation. Africa's marginalization in trade suggests that companies are not reaping the full benefits associated with foreign markets. This research aims to empirically analyze the factors that explain the low participation of African firms in world trade, as well as the intensity with which participating firms trade with the rest of the world. Based on Enterprise Surveys data from the World Bank, a two-step selection model is developed. The first focusing on extensive trade margins, the second on intensive margins. The results show that size, age, the share of exporting firms in the industry, foreign capital and access to credit increase the probability of exporting. When it comes to the export effort, it is explained by a strong presence of foreign capital. On the other hand, the size and age of the company decrease with export intensity. A good understanding of the mechanisms that generate the constraints on firms' entry into external markets can guide public strategies to improve business performance on the continent and reduce its marginalization in world trade.
    Abstract: Le commerce international offre des potentialités importantes de développement aux entreprises qui s'y engagent, en termes notamment de transfert de technologie, de revenu accru et de création d'emplois. La marginalisation de l'Afrique dans les échanges commerciaux suggère que les entreprises ne tirent pas tous les avantages associés aux marchés extérieurs. Cette recherche se propose d'analyser empiriquement les facteurs explicatifs de la faible participation des entreprises africaines au commerce mondial, ainsi que de l'intensité avec laquelle les firmes participantes échangent avec le reste du monde. À partir des données d'Entreprise Surveys de la Banque Mondiale, il est développé un modèle de sélection à deux étapes, le premier portant sur les marges commerciales extensives, la seconde s'intéressant aux marges intensives. Les résultats montrent que la taille, l'âge, la part des entreprises exportatrices dans la branche d'activité, les capitaux étrangers et l'accès aux crédits augmentent la probabilité d'exporter. Quand il s'agit de l'effort d'exportation, c'est expliqué par une forte présence de capitaux étrangers. Cependant, la taille et l'âge de l'entreprise diminuent avec l'intensité des exportations. Une bonne compréhension des mécanismes générateurs des contraintes qui pèsent sur l'entrée des firmes sur les marchés extérieurs est de nature à guider les stratégies publiques d'amélioration de la performance des entreprises sur le continent et de réduire la marginalisation de ce dernier dans le commerce mondial.
    Keywords: O55 Paper type: Empirical Research, Performances à l'exportation, participation, intensité, entreprises, Africa Code JEL: F13, O55 Type de papier : Recherche empirique Export, F14, Afrique Code JEL : F13, Africa Code JEL: F13 F14 O55 Paper type: Empirical Research, selection model, firms, intensity, Afrique Code JEL : F13 F14 O55 Type de papier : Recherche empirique Export, modèle de sélection
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:hal:journl:hal-05226546
  2. By: Jaedo Choi; George Cui; Younghun Shim; Yongseok Shin
    Abstract: US multinationals formed joint ventures in China for market access and lower labor costs. However, these ventures transfer technology to Chinese firms, fueling future competition. While individual firms weigh the risks to their own profits, they disregard the negative impact on other US firms and the broader economy, resulting in an over-investment that may reduce the US welfare. In our empirical analysis, industries with more joint ventures in China show positive spillovers to Chinese firms but negative outcomes for firms in the US. We develop a two-country model with oligopolistic competition, innovation, and joint ventures. For the US, the short-run gains from joint ventures are outweighed by long-run losses due to rising Chinese competition. Joint ventures benefit large US firms at the expense of small firms and the real wages of workers. A ban on joint ventures since 1999 would have boosted US welfare by 1.2 percent.
    JEL: F23 O25 O33
    Date: 2025–09
    URL: https://d.repec.org/n?u=RePEc:nbr:nberwo:34284

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