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Extensive Margins of Imports and Profitability: First Evidence for Manufacturing Enterprises in Germany

Joachim Wagner ()

No 298, Working Paper Series in Economics from University of Lüneburg, Institute of Economics

Abstract: This paper uses a tailor-made newly available data set for enterprises from manufacturing industries in Germany to investigate for the first time the links between the extensive margins of imports (the number of imported goods and the number of countries imported from) and firm profitability. While both extensive margins are highly positively linked with firm productivity, profits are not higher in firms that import more goods and from more countries. This demonstrates that productivity advantages of importers are eaten up by extra costs related to buying more goods in more countries.

Keywords: Imports; intensive margins; profitability; Germany (search for similar items in EconPapers)
JEL-codes: F14 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-cse, nep-eff, nep-eur and nep-int
Date: 2014-05
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