Foreign Ownership and Firm Performance in German Services: First Evidence based on Official Statistics

John P. Weche

No 213, Working Paper Series in Economics from University of Lüneburg, Institute of Economics

Abstract: This study provides first comprehensive analyses of foreign-controlled enterprises in the German service sector based on new micro data from official statistics. Various performance measures were examined by comparing unconditional and conditional means and quantile regression techniques were applied. Results reveal persistently superior performance for foreign-controlled affiliates when compared to German-owned affiliates. In contrast, the relationship for profitability is exactly the opposite. Labor productivity becomes insignificant when the comparison group consists of domestically-owned affiliates with a high degree of internationalization. A breakdown by country of origin shows that European affiliates pay lower wages and export less compared to other foreign affiliates and that there is no productivity advantage in favor of US firms like in manufacturing.

Keywords: foreign ownership; firm performance; inward FDI; service sector; multinational enterprise (search for similar items in EconPapers)
JEL-codes: F15 F21 F23 (search for similar items in EconPapers)
Pages: 52 pages
Date: 2011-08
New Economics Papers: this item is included in nep-bec, nep-cse, nep-eec, nep-eff, nep-eur, nep-int and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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