 Exports, foreign direct investment, and productivity: evidence from German firm level dataApplied Economics Letters, 2006, vol. 13, issue 6, 347-349 Abstract: This study presents the first empirical test with German establishment level data of a hypothesis derived by Helpman et al. (2004) in a model that explains the decision of heterogeneous firms to serve foreign markets either through exports or foreign direct investment: only the more productive firms choose to serve the foreign markets, and the most productive among this group will further choose to serve these markets via foreign direct investments. Using a non-parametric test for first order stochastic dominance it is shown that, in line with this hypothesis, the productivity distribution of foreign direct investors dominates that of exporters, which in turn dominates that of national market suppliers. Date: 2006 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:apeclt:v:13:y:2006:i:6:p:347-349 Ordering information: This journal article can be ordered from DOI: 10.1080/13504850500393667 Access Statistics for this article Applied Economics Letters is currently edited by Anita Phillips More articles in Applied Economics Letters from Taylor & Francis Journals |
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