Globalization and firm growth: does ownership matter?

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Abstract

This study explores the determinants of firm growth in China. In this era of liberalization and globalization, investigating how firms’ size, age, exports, and foreign ownership jointly influence firm growth is essential. Based on a nationally representative firm-level panel dataset for the 2001–2007 period, our results reveal that exporters and foreign-owned enterprises (FOEs) exhibit higher growth rates than their respective counterparts. Crucially, small exporters experience higher growth than larger exporters, whereas large FOEs grow faster than their smaller counterparts. The role of export premiums in enhancing growth is observed for firms of all sizes and age groups, and the positive influence of foreign ownership on growth is only evident for small, medium, and young firms. Finally, we find that domestic firms, particularly small and young local firms, enjoy a larger export premium than FOEs.

Original languageEnglish
Pages (from-to)1019-1037
Number of pages19
JournalSmall Business Economics
Volume55
Issue number4
DOIs
StatePublished - 1 Dec 2020

Keywords

  • Export
  • Firm growth
  • Ownership

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