Abstract
We study how key dimensions in the home country institutional environment – credit markets environment, export regulation, and corruption – affect firm internationalization via exporting and outward foreign direct investment (OFDI). We conduct our study using country- level data from 96 developed and developing countries between 2000 and 2018. Our results provide novel insights on the channel of internationalization as a response to changes in home country export regulations, credit market development, corruption. Changes in home- country institutions effect mainly type of firm internationalization, with the differences in the relationship between institutions and OFDI mainly associated with credit market conditions.
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