TY - UNPB

T1 - Exports, foreign direct investment, and productivity

T2 - evidence from German firm level data

AU - Wagner, Joachim

N1 - Literaturverz. S. 6

PY - 2005

Y1 - 2005

N2 - This paper presents the first empirical test with German establishment level data of a hypothesis derived by Helpman, Melitz and Yeaple in a model that explains the decision of heterogeneous firms to serve foreign markets either trough exports or foreign direct investment: only the more productive firms choose to serve the foreign markets, and the most productive among this group will further choose to serve these markets via foreign direct investments. Using a non-parametric test for first order stochastic dominance it is shown that, in line with this hypothesis, the productivity distribution of foreign direct investors dominates that of exporters, which in turn dominates that of national market suppliers.

AB - This paper presents the first empirical test with German establishment level data of a hypothesis derived by Helpman, Melitz and Yeaple in a model that explains the decision of heterogeneous firms to serve foreign markets either trough exports or foreign direct investment: only the more productive firms choose to serve the foreign markets, and the most productive among this group will further choose to serve these markets via foreign direct investments. Using a non-parametric test for first order stochastic dominance it is shown that, in line with this hypothesis, the productivity distribution of foreign direct investors dominates that of exporters, which in turn dominates that of national market suppliers.

KW - Economics

KW - exports

KW - foreign direct investment

KW - productivity

KW - heterogeneous firms

KW - stochastic dominance

M3 - Working papers

T3 - Working paper series in economics

BT - Exports, foreign direct investment, and productivity

PB - Institut für Volkswirtschaftslehre der Universität Lüneburg

CY - Lüneburg

ER -