Foreign ownership and the export and import propensities of developing-country firms

Dominik Boddin, Horst Raff and Natalia Trofimenko

No 1995, Kiel Working Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: This paper uses micro-data from the World Bank Enterprise Surveys 2002-2006 to investigate how foreign ownership affects the likelihood of manufacturers in developing countries to export and/or import. Applying propensity score matching to control for differences across firms in terms of labor productivity and other characteristics, we find that foreign ownership is an economically important and statistically significant determinant of the likelihood that a firm will export and/or import. Foreign ownership raises the propensity to export by over 17 and the propensity to import by more than 13 percentage points. The effects are even bigger for the lowest-income countries.

Keywords: international trade; multinational enterprise; foreign direct investment; foreign ownership; development; intermediation (search for similar items in EconPapers)
JEL-codes: F12 F14 F23 O19 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-cse and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Foreign ownership and the export and import propensities of developing-country firms (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkwp:1995

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