Foreign Ownership and Firm Performance in German Services: First Evidence based on Official Statistics
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In: The Service Industries Journal, Vol. 33, No. 15-16, 01.12.2013, p. 1564-1598.
Research output: Journal contributions › Journal articles › Research › peer-review
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TY - JOUR
T1 - Foreign Ownership and Firm Performance in German Services:
T2 - First Evidence based on Official Statistics
AU - Weche Gelübcke, John Philipp
PY - 2013/12/1
Y1 - 2013/12/1
N2 - This study provides the first comprehensive analysis of foreign-controlled enterprises in the German service sector based on new micro-data from official German statistics. Various performance measures were examined via comparison of unconditional and conditional means and through use of quantile regression techniques. Foreigncontrolled affiliates consistently performed better than German-owned affiliates. In contrast, profitability exhibited precisely the opposite trend. Moreover, labour productivity did not significantly differ when the comparison group consisted of domestically owned affiliates with a high degree of internationalization. A breakdown by country of origin showed that European affiliates pay lower wages and export less relative to non-European affiliates, and US firms have no productivity advantage as in manufacturing.
AB - This study provides the first comprehensive analysis of foreign-controlled enterprises in the German service sector based on new micro-data from official German statistics. Various performance measures were examined via comparison of unconditional and conditional means and through use of quantile regression techniques. Foreigncontrolled affiliates consistently performed better than German-owned affiliates. In contrast, profitability exhibited precisely the opposite trend. Moreover, labour productivity did not significantly differ when the comparison group consisted of domestically owned affiliates with a high degree of internationalization. A breakdown by country of origin showed that European affiliates pay lower wages and export less relative to non-European affiliates, and US firms have no productivity advantage as in manufacturing.
KW - Economics
KW - firm performance
KW - foreign ownership
KW - inward FDI
KW - multinational enterprise
U2 - 10.1080/02642069.2011.638711
DO - 10.1080/02642069.2011.638711
M3 - Journal articles
VL - 33
SP - 1564
EP - 1598
JO - The Service Industries Journal
JF - The Service Industries Journal
SN - 0264-2069
IS - 15-16
ER -