Foreign Ownership and the Extensive Margins of Exports: Evidence for Manufacturing Enterprises in Germany
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In: World Economy, Vol. 37, No. 5, 05.2014, p. 579-591.
Research output: Journal contributions › Journal articles › Research › peer-review
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TY - JOUR
T1 - Foreign Ownership and the Extensive Margins of Exports
T2 - Evidence for Manufacturing Enterprises in Germany
AU - Raff, Horst
AU - Wagner, Joachim
PY - 2014/5
Y1 - 2014/5
N2 - We examine how foreign ownership of a firm affects the variety of goods that the firm exports and the number of countries it trades with. We construct a simple theoretical model of how foreign ownership may affect these extensive margins of exports and take this model to data from Germany, one of the leading actors on the world market for goods. In line with theoretical predictions we find that foreign-owned firms do export more goods to more countries after controlling for firm size, productivity and industry affiliation. These differences between foreign-owned firms and domestically controlled firms are highly statistically significant, and they are large from an economic point of view, with foreign-owned firms exporting up to 39 per cent more goods to up to 31 per cent more countries.
AB - We examine how foreign ownership of a firm affects the variety of goods that the firm exports and the number of countries it trades with. We construct a simple theoretical model of how foreign ownership may affect these extensive margins of exports and take this model to data from Germany, one of the leading actors on the world market for goods. In line with theoretical predictions we find that foreign-owned firms do export more goods to more countries after controlling for firm size, productivity and industry affiliation. These differences between foreign-owned firms and domestically controlled firms are highly statistically significant, and they are large from an economic point of view, with foreign-owned firms exporting up to 39 per cent more goods to up to 31 per cent more countries.
KW - Economics
KW - Export
KW - firm size
KW - goods exchange
KW - manufacturing
KW - ownership
KW - productivity
KW - Economics, empirical/statistics
UR - http://www.scopus.com/inward/record.url?scp=84899932588&partnerID=8YFLogxK
UR - https://www.mendeley.com/catalogue/aa87782e-ab2b-37db-9d58-a7ffd255ac63/
U2 - 10.1111/twec.12157
DO - 10.1111/twec.12157
M3 - Journal articles
AN - SCOPUS:84899932588
VL - 37
SP - 579
EP - 591
JO - World Economy
JF - World Economy
SN - 0378-5920
IS - 5
ER -