Barriers to Internationalization: Firm-Level Evidence from Germany
AbstractExporters and multinationals are larger and more productive than their domestic counterparts. In addition to productivity, financial constraints and labor market constraints might constitute barriers to entry into foreign markets. We present new empirical evidence on the extensive and intensive margin of exports and FDI based on detailed micro-level data of German firms. Our paper has three main findings. First, in line with earlier literature, we find a positive impact of firm size and productivity on firms’ international activities. Second, small firms suffer more frequently from financial constraints than bigger firms, but financial conditions have no strong effect on internationalization. Third, labor market constraints constitute a more severe barrier to foreign activities than financial constraints. Being covered by collective bargaining particularly impedes international activities.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Institut für Angewandte Wirtschaftsforschung (IAW) in its series IAW Discussion Papers with number 52.
Length: 26 pages
Date of creation: Sep 2009
Date of revision:
foreign direct investment; exports; firm heterogeneity; productivity; financial constraints; labor market constraints;
Find related papers by JEL classification:
- F2 - International Economics - - International Factor Movements and International Business
- G2 - Financial Economics - - Financial Institutions and Services
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-10-17 (All new papers)
- NEP-BEC-2009-10-17 (Business Economics)
- NEP-CSE-2009-10-17 (Economics of Strategic Management)
- NEP-EFF-2009-10-17 (Efficiency & Productivity)
- NEP-INT-2009-10-17 (International Trade)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Christian Arndt & Claudia M. Buch & Anselm Mattes, 2009. "Firm-Specific Factor Market Constraints and FDI: Evidence from Germany," Development Working Papers 269, Centro Studi Luca d\'Agliano, University of Milano.
- Georg H. Strasser, 2011. "Exchange Rate Pass-Through and Credit Constraints: Firms Price to Market as Long as They Can," Boston College Working Papers in Economics 788, Boston College Department of Economics, revised 13 Feb 2012.
- Julian di Giovanni & Andrei A. Levchenko, 2012.
"Country Size, International Trade, and Aggregate Fluctuations in Granular Economies,"
Journal of Political Economy,
University of Chicago Press, vol. 120(6), pages 1083 - 1132.
- Julian di Giovanni & Andrei A. Levchenko, 2011. "Country Size, International Trade, and Aggregate Fluctuations in Granular Economies," NBER Working Papers 17335, National Bureau of Economic Research, Inc.
- Li Junjiang & Hou Lei & Zhang Jiarui, 2011. "Capital endowment, credit constraint and FDI: Analysis based on heterogeneous firms," Frontiers of Economics in China, Springer, vol. 6(1), pages 55-75, March.
- Askenazy, Ph. & Caldera, A. & Gaulier, G. & Irac, D., 2011.
"Financial Constraints and Foreign Market Entries or Exits: Firm-Level Evidence from France,"
328, Banque de France.
- Askenazy, Philippe & Caldera, Aida & Gaulier, Guillaume & Irac, Delphine, 2011. "Financial Constraints and Foreign Market Entries or Exits: Firm Level Evidence from France," CEPREMAP Working Papers (Docweb) 1112, CEPREMAP.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Rolf Kleimann).
If references are entirely missing, you can add them using this form.