Assessing the impact of firm’s internationalization through investment and trade in selected south Asian Bri countries: an asymmetric perspective

This paper examines the determinants of firm internationalization in five South Asian, Belt and Road Initiative (BRI) economies: Afghanistan, Bhutan, the Maldives, Nepal and Pakistan. It integrates firm-level characteristics, relational networks, and contextual advantages. Theoretically grounded in the Uppsala Internationalization Model, the Innovation-Related Model, and Industrial Network Theory. It conceptualizes internationalization as a multifaced process characterized by learning, innovation and network embeddedness. Paper employs Heckman two-step selection model on a data set of 819 firms, the empirical analysis differentiates between the factors influencing the decision to international markets and subsequent intensity of export and import engagement. The results show that firm size is a consistently strong predictor of both export and import intensity, reflecting the strategic importance of scale and resource capacity. Moreover, perceived investment advantages also found to enhance the dept of internationalization, though the magnitude of this effect is contingent upon the institutional contexts. The study also reveals that firm age exhibits a weak or even negative associations with internationalization, suggesting that the benefits of experience may be offset by organizational inertia. In contrast, the age of firm-to-firm relationships significantly shapes both participation and trade volume, highlighting the importance of relational capital. Furthermore, cultural affinity is shown to facilitate imports while constraining export diversification, and heightened investor awareness is associated with Increased import participation. The overall finding of this paper suggest that the internationalization trajectory of firms in South Asian BRI economies is complex and is shaped by the interplay of firm specific capabilities, the maturity of their relational networks, and the prevailing institutional conditions within each country.