TY - JOUR

T1 - Does it pay to be active on many foreign markets?

T2 - Profitability in German multi-market exporters and importers from manufacturing industries

AU - Wagner, Joachim

PY - 2019/4/1

Y1 - 2019/4/1

N2 - This paper provides the first empirical evidence on the link between the number of foreign markets (where a market is defined as the combination of one traded good and one country traded with) a firm is active on and its profitability. We find that in German manufacturing industries the profitability of a firm is neither positively nor negatively related to the number of foreign markets. The extra costs associated with being active on more foreign markets tend to be balanced by the extra benefits. Therefore, we have evidence that it does not pay to be active on many foreign markets.

AB - This paper provides the first empirical evidence on the link between the number of foreign markets (where a market is defined as the combination of one traded good and one country traded with) a firm is active on and its profitability. We find that in German manufacturing industries the profitability of a firm is neither positively nor negatively related to the number of foreign markets. The extra costs associated with being active on more foreign markets tend to be balanced by the extra benefits. Therefore, we have evidence that it does not pay to be active on many foreign markets.

KW - Economics

KW - exports

KW - Germany

KW - imports

KW - number of foreign markets

KW - profitability

UR - http://www.scopus.com/inward/record.url?scp=85065713762&partnerID=8YFLogxK

U2 - 10.1515/roe-2018-0013

DO - 10.1515/roe-2018-0013

M3 - Scientific review articles

VL - 70

SP - 1

EP - 13

JO - Jahrbuch für Wirtschaftswissenschaften

JF - Jahrbuch für Wirtschaftswissenschaften

SN - 0948-5139

IS - 1

ER -