The performance of foreign affiliates in German manufacturing: evidence from a new database

John P. Weche

Review of World Economics (Weltwirtschaftliches Archiv), 2013, vol. 149, issue 1, 182 pages

Abstract: This study presents the first investigation into the performance of foreign-controlled enterprises in German manufacturing, based on new micro-data from official statistics. A comprehensive set of performance variables is examined, not only by comparing unconditional mean values but also by accounting for other determinants and differences across distributions. The analysis reveals a foreign ownership performance premium with regard to productivity, research and development, export intensities, and average wages. Only profitability seems not to differ from German-owned enterprises. Results are verified by varying comparison groups of indigenous firms and separating for high- and low-tech sectors. Furthermore, a breakdown by country of origin and type of group head shows considerable heterogeneity within the group of foreign-controlled affiliates in Germany. Copyright Kiel Institute 2013

Keywords: Foreign ownership; Firm performance; Inward FDI; Multinational enterprise; F21; F23 (search for similar items in EconPapers)
Date: 2013
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Working Paper: The Performance of Foreign Affiliates in German Manufacturing: Evidence from a new Database (2011)
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DOI: 10.1007/s10290-012-0142-1

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