Service Trade Restrictiveness and Internationalisation of Retail Trade
No JRC113769, JRC Working Papers from Joint Research Centre (Seville site)
Based on a review of recent economic theories dealing with the internationalisation of firms and a discussion of necessary adaptations of these theories to special features of the retail trade sector, this technical report offers an empirical analysis of the determinants of the extensive and intensive margin of retail trade FDI activities of 42 countries in 23 EU countries. Special attention is paid within a gravity model framework to the impact of service trade restrictions on both margins of retail trade internationalisation. The use of hurdle models for count data to estimate the determinants of the extensive margin takes into account that there are a lot of zero counts for the number of retail trade firms controlled by a country j in an EU country i. The estimation results for the extensive margin of retail trade FDI activities show that service trade restrictiveness increases the hurdle that at least one firm from country j controls a retail trade firm in country i. Once one firm from country j has been able to jump over this hurdle, the existing service trade restrictions are neither a relevant factor for the number of following firms from country j in that market nor for the average employment and sales of these firms.
Keywords: Economic integration; multinational enterprises; foreign direct investment; entry modes; location decisions; retail trade; service trade restrictions; count data model; hurdle model (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Journal Article: Service trade restrictiveness and internationalisation of retail trade (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ipt:iptwpa:jrc113769
Access Statistics for this paper
More papers in JRC Working Papers from Joint Research Centre (Seville site) Contact information at EDIRC.
Bibliographic data for series maintained by Publication Officer ().