Title: Are more exports better for a firm's performance? The moderating effect of FDI

Authors: Yu-Ching Chiao, Peng-Yu Li

Addresses: Department of Business Administration, National Chung Hsing University, 250 Kuo-Kuang Rd, Taichung 402, Taiwan. ' Department of International Trade and Finance, Fu-Jen Catholic University, 510 Chung Cheng Rd, Hsinchuang, Taipei 24205, Taiwan

Abstract: This study extends the research on the relationship between exporting and firm performance into the context of Newly Industrialised Economies (NIEs). The study|s examination of 577 Taiwanese manufacturers shows that the relationship between export-based internationalisation and performance may be characterised by an inverted U-shaped curve. Furthermore, firms| engagement in foreign direct investment-based internationalisation appears to have a negative moderating effect on the relationship between exporting and firm profitability.

Keywords: exports; foreign direct investment; newly industrialised economies; NIEs; internationalisation; firm performance; FDI; Taiwan; firm profitability.

DOI: 10.1504/EJIM.2009.026993

European Journal of International Management, 2009 Vol.3 No.3, pp.286 - 301

Available online: 12 Jul 2009 *

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