Junjiang Li, Lei Hou, Jiarui Zhang
Author information
a School of Economics, Jilin University, Changchun 130012, China
b School of Economics, Jilin University, Changchun 130012, China
c Department of Economics, University of Munich, Munich 80539, Germany
E-mail: lijj@jlu.edu.cn(Junjiang Li), lei.hou@lrz.uni-muenchen.de(Lei Hou), jiarui.zhang@campus.lmu.de(Jiarui Zhang)
To examine the impact of capital endowment and credit constraint on firms’ FDI decisions, we build a model of investment portfolio based on heterogeneous firms setup. We find that financial factors matter for firms’ internationalization. More capital endowment or less credit constraint lowers cutoff productivity for firms to do FDI.
capital endowment , credit constraint , FDI , heterogeneous firms , productivity
Junjiang Li, Lei Hou, Jiarui Zhang. Capital Endowment, Credit Constraint and FDI: Analysis Based on Heterogeneous Firms. Front Econ Chin, 2011, 6(1): 55‒75 https://doi.org/10.1007/s11459-011-0122-8
