Exports, Foreign Direct Investment, and Productivity: Evidence from German Firm Level Data

Analysis of Productivity Differences among Foreign and Domestic Firms: Evidence from Germany

“…Nevertheless, they are able to divide German firms into non-exporting domestic firms which they find to be least productive, followed by domestic exporting firms, while firms which undertake FDI are the most productive. Wagner (2006) also shows evidence supporting the Helpman et al (2004) hypothesis for a sample of manufacturing firms 5 operating in the German state of Lower Saxony. Bellmann and Jungnickel (2002) show that foreign-owned firms are more productive than German non-MNEs as well as German MNEs.…”

Foreign direct investment and firm performance: an empirical analysis of Italian firms

“…Barba Navaretti and Castellani (2004) analyze the performance of a sample of Italian firms which invest abroad for the first time between 1994 and 1997, showing a positive gap in turnover and Footnote 7 continued Castellani and Zanfei (2007) confirm only the advantage for multinational firms over exporters; Castellani and Giovannetti (2010) add that these productivity premia are explained by a higher productivity of capital as well as managerial and clerical employment. The same results are confirmed for Germany (Wagner 2006;Arnold and Hussinger 2010) and France (Engel and Procher 2012). 8 By contrast, the self-selection of exporting firms has been widely investigated.…”

Offshoring and firm performance: self-selection, effects on performance, or both?

“…3 A related literature uses firm level data to investigate the causes and consequences of foreign sourcing, defined as the import of intermediate inputs. Recent contributions include Farinas and Martín-Marcos (2010) for Spain,Görg et al (2008b) for Ireland,Ito et al (2008) for Japan,Jabbour (2010) for France,Kurz (2006) for the United States and Morrison Paul and Yasar (2009) for Turkey.4 The same argument holds for sunk costs related to exporting and foreign direct investment; seeWagner (2007a) for a survey of the literature andWagner (2006Wagner ( , 2007b for studies with German firm level data.Self-selection, effects on performance, or both?…”