Foreign Ownership and the Extensive Margins of Exports: Evidence for Manufacturing Enterprises in Germany
2014 (English)In: The World Economy, ISSN 0378-5920, E-ISSN 1467-9701, Vol. 37, no 5, 579-591 p.Article in journal (Refereed) Published
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.
Place, publisher, year, edition, pages
2014. Vol. 37, no 5, 579-591 p.
export, firm size, goods exchange, manufacturing, ownership, productivity
Economics and Business
IdentifiersURN: urn:nbn:se:kth:diva-147058DOI: 10.1111/twec.12157ISI: 000335405700001ScopusID: 2-s2.0-84899932588OAI: oai:DiVA.org:kth-147058DiVA: diva2:728304
QC 201406242014-06-242014-06-232014-06-24Bibliographically approved