Scandinavian Working Papers in Economics
Working Paper Series in Economics and Institutions of Innovation,
Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies
No 317: Foreign Ownership and the Extensive Margins of Exports: Evidence for Manufacturing Enterprises in Germany
Horst Raff () and Joachim Wagner ()
Additional contact information
Horst Raff: Christian-Albrechts-University of Kiel, Kiel Institute for the World Economy and CESifo
Joachim Wagner: Leuphana University Lueneburg, CESIS, Royal Institute of Technology, Stockholm
Abstract: 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.
Keywords: International trade; foreign ownership; multinational enterprise; foreign direct investment; extensive margins of exports; Germany
24 pages, June 12, 2013
Full text files
cesiswp317.pdf
- Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies
- Home page for this series
Questions (including download problems) about the papers in this series should be directed to Vardan Hovsepyan ()
Report other problems with accessing this service to Sune Karlsson ().
This page generated on 2024-02-21 12:08:39.