The Performance of Foreign Affiliates in German Manufacturing: Evidence from a new Database
Publikation: Beiträge in Zeitschriften › Zeitschriftenaufsätze › Forschung › begutachtet
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in: Review of World Economics, Jahrgang 149, Nr. 1, 03.2013, S. 151-182.
Publikation: Beiträge in Zeitschriften › Zeitschriftenaufsätze › Forschung › begutachtet
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RIS
TY - JOUR
T1 - The Performance of Foreign Affiliates in German Manufacturing
T2 - Evidence from a new Database
AU - Weche Gelübcke, John Philipp
PY - 2013/3
Y1 - 2013/3
N2 - This study presents the first investigation into the performance of foreign-controlled enterprises in German manufacturing, based on new micro-data from official statistics. A comprehensive set of performance variables is examined, not only by comparing unconditional mean values but also by accounting for other determinants and differences across distributions. The analysis reveals a foreign ownership performance premium with regard to productivity, research and development, export intensities, and average wages. Only profitability seems not to differ from German-owned enterprises. Results are verified by varying comparison groups of indigenous firms and separating for high- and low-tech sectors. Furthermore, a breakdown by country of origin and type of group head shows considerable heterogeneity within the group of foreign-controlled affiliates in Germany.
AB - This study presents the first investigation into the performance of foreign-controlled enterprises in German manufacturing, based on new micro-data from official statistics. A comprehensive set of performance variables is examined, not only by comparing unconditional mean values but also by accounting for other determinants and differences across distributions. The analysis reveals a foreign ownership performance premium with regard to productivity, research and development, export intensities, and average wages. Only profitability seems not to differ from German-owned enterprises. Results are verified by varying comparison groups of indigenous firms and separating for high- and low-tech sectors. Furthermore, a breakdown by country of origin and type of group head shows considerable heterogeneity within the group of foreign-controlled affiliates in Germany.
KW - Economics
KW - Firm performance
KW - Foreign ownership
KW - Inward FDI
KW - Multinational enterprise
UR - http://www.scopus.com/inward/record.url?scp=84873746387&partnerID=8YFLogxK
U2 - 10.1007/s10290-012-0142-1
DO - 10.1007/s10290-012-0142-1
M3 - Journal articles
VL - 149
SP - 151
EP - 182
JO - Review of World Economics
JF - Review of World Economics
SN - 1610-2878
IS - 1
ER -