Does it pay to be active on many foreign markets? profitability in german multi-market exporters and importers from manufacturing industries

Research output: Contributions to collected editions/worksChapterResearchpeer-review


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.

Original languageEnglish
Title of host publicationMicroeconometric Studies Of Firms Imports And Exports : Advanced Methods Of Analysis And Evidence From German Enterprises
EditorsJoachim Wagner
Number of pages15
PublisherWorld Scientific Publishing Co.
Publication date25.02.2021
ISBN (Print)9781786349682
ISBN (Electronic)9781786349705
Publication statusPublished - 25.02.2021

    Research areas

  • Exports, Germany, Imports, Number of foreign markets, Profitability
  • Economics