TY - JOUR

T1 - Extensive margins of imports, productivity and profitability: First evidence for manufacturing enterprises in Germany

AU - Wagner, Joachim

PY - 2014

Y1 - 2014

N2 - This paper uses a tailor-made newly available data set for enterprises from manufacturing industries in Germany to investigate for the first time the links between the extensive margins of imports (the number of imported goods and the number of countries imported from) and two dimensions of firm performance, productivity and profitability. While both extensive margins are highly positively linked with firm productivity, profits are not higher in firms that import more goods and from more countries. This demonstrates that productivity advantages of importers are eaten up by extra costs related to buying more goods in more countries.

AB - This paper uses a tailor-made newly available data set for enterprises from manufacturing industries in Germany to investigate for the first time the links between the extensive margins of imports (the number of imported goods and the number of countries imported from) and two dimensions of firm performance, productivity and profitability. While both extensive margins are highly positively linked with firm productivity, profits are not higher in firms that import more goods and from more countries. This demonstrates that productivity advantages of importers are eaten up by extra costs related to buying more goods in more countries.

KW - Economics

M3 - Journal articles

VL - 34

SP - 1669

EP - 1678

JO - Economics Bulletin

JF - Economics Bulletin

SN - 1545-2921

IS - 3

ER -