Foreign Ownership and the Extensive Margins of Exports: Evidence for Manufacturing Enterprises in Germany
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Foreign Ownership and the Extensive Margins of Exports: Evidence for Manufacturing Enterprises in Germany. / Raff, Horst; Wagner, Joachim.
Lüneburg : Institut für Volkswirtschaftslehre der Universität Lüneburg, 2013. (University of Lüneburg Working Papers in Economics; Vol. 2013, No. 277).Research output: Working paper › Working papers
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TY - UNPB
T1 - Foreign Ownership and the Extensive Margins of Exports: Evidence for Manufacturing Enterprises in Germany
AU - Raff, Horst
AU - Wagner, Joachim
PY - 2013
Y1 - 2013
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% more goods to up to 31% 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% more goods to up to 31% more countries.
KW - Economics
KW - international trade
KW - foreign ownership
KW - multinational enterprise
KW - foreign direct investment
KW - extensive margins of exports
KW - Germany
M3 - Working papers
T3 - University of Lüneburg Working Papers in Economics
BT - Foreign Ownership and the Extensive Margins of Exports: Evidence for Manufacturing Enterprises in Germany
PB - Institut für Volkswirtschaftslehre der Universität Lüneburg
CY - Lüneburg
ER -