Characterizing Euro Area Multinationals
AbstractThis study uses firm-level data on a large sample of European manufacturing firms to investigate the links between opening up foreign affiliates and firms' productivity. The analysis is guided by recent theoretical models of international trade with firm heterogeneity. The paper finds that while only a small share of euro area firms locate affiliates abroad, these firms account for over-proportionally large shares of output, employment and profits in their home countries. They have higher survival rates and their productivity growth is also higher. The strongest contribution is by productivity growth of existing firms with a multinational status rather than entry into the multinational status. Finally, there are performance premia for multinationals with a large number of affiliates abroad relative to those with a small number
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 Kiel Institute for the World Economy in its series Kiel Working Papers with number 1413.
Length: 30 pages
Date of creation: Apr 2008
Date of revision:
multinational enterprises; productivity growth; productivity decomposition; survival;
Other versions of this item:
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-04-29 (All new papers)
- NEP-EEC-2008-04-29 (European Economics)
- NEP-EFF-2008-04-29 (Efficiency & Productivity)
- NEP-INT-2008-04-29 (International Trade)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Arnold, Jens Matthias & Hussinger, Katrin, 2006.
"Exports versus FDI in German manufacturing: firm performance and participation in international markets,"
Discussion Paper Series 1: Economic Studies
2006,04, Deutsche Bundesbank, Research Centre.
- Jens M. Arnold & Katrin Hussinger, 2010. "Exports versus FDI in German Manufacturing: Firm Performance and Participation in International Markets," Review of International Economics, Wiley Blackwell, vol. 18(4), pages 595-606, 09.
- Arnold, Jens Matthias & Hussinger, Katrin, 2005. "Exports versus FDI in German Manufacturing: Firm Performance and Participation in International Markets," ZEW Discussion Papers 05-73, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Holger G�rg & Eric Strobl, 2003.
University of Manchester, vol. 71(1), pages 1-19, January.
- Andrew B Bernard & J. Bradford Jensen, 2007.
"Firm Structure, Multinationals, and Manufacturing Plant Deaths,"
The Review of Economics and Statistics,
MIT Press, vol. 89(2), pages 193-204, May.
- J. Bradford Jensen & Andrew Bernard, 2005. "Firm Structure, Multinationals, and Manufacturing Plant Deaths," Working Papers 05-18, Center for Economic Studies, U.S. Census Bureau.
- Andrew B. Bernard & J. Bradford Jensen, 2006. "Firm Structure, Multinationals, and Manufacturing Plant Deaths," Working Paper Series WP06-7, Peterson Institute for International Economics.
- Lucia Foster & John C. Haltiwanger & C. J. Krizan, 2001.
"Aggregate Productivity Growth. Lessons from Microeconomic Evidence,"
in: New Developments in Productivity Analysis, pages 303-372
National Bureau of Economic Research, Inc.
- Lucia Foster & John Haltiwanger & C.J. Krizan, 1998. "Aggregate Productivity Growth: Lessons from Microeconomic Evidence," NBER Working Papers 6803, National Bureau of Economic Research, Inc.
- John Haltiwanger & C J Krizan & Lucia Foster, 1998. "Aggregate Productivity Growth: Lessons From Microeconomic Evidence," Working Papers 98-12, Center for Economic Studies, U.S. Census Bureau.
- Greenaway, David & Kneller, Richard, 2008. "Exporting, productivity and agglomeration," European Economic Review, Elsevier, vol. 52(5), pages 919-939, July.
- GIRMA, Sourafel & GOERG, Holger & STROBL, Eric, 2004.
"Exports, international investment, and plant performance : evidence from a non-parametric test,"
CORE Discussion Papers
2004009, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Girma, Sourafel & Gorg, Holger & Strobl, Eric, 2004. "Exports, international investment, and plant performance: evidence from a non-parametric test," Economics Letters, Elsevier, vol. 83(3), pages 317-324, June.
- Sourafel Girma & Holger Görg & Eric Strobl, 2003. "Exports, International Investment, and Plant Performance: Evidence from a Non-Parametric Test," Discussion Papers of DIW Berlin 379, DIW Berlin, German Institute for Economic Research.
- Hennart, J.M.A., 2007. "The theoretical rationale for a multinationality - performance relationship," Open Access publications from Tilburg University urn:nbn:nl:ui:12-284201, Tilburg University.
- Delgado, Miguel A. & Farinas, Jose C. & Ruano, Sonia, 2002. "Firm productivity and export markets: a non-parametric approach," Journal of International Economics, Elsevier, vol. 57(2), pages 397-422, August.
- Helpman, Elhanan & Melitz, Marc J & Yeaple, Stephen R, 2003.
"Export versus FDI,"
CEPR Discussion Papers
3741, C.E.P.R. Discussion Papers.
- Elhanan Helpman & Marc J. Melitz & Stephen R. Yeaple, 2003. "Export versus FDI," NBER Working Papers 9439, National Bureau of Economic Research, Inc.
- Elhanan Helpman & Marc J. Melitz & Stephen R. Yeaple, 2003. "Export versus FDI," Harvard Institute of Economic Research Working Papers 1998, Harvard - Institute of Economic Research.
- Martin Borowiecki & Bernhard Dachs & Doris Hanzl-Weiss & Steffen Kinkel & Johannes Pöschl & Magdolna Sass & Thomas Christian Schmall & Robert Stehrer & Andrea Szalavetz, 2012. "Global Value Chains and the EU Industry," wiiw Research Reports 383, The Vienna Institute for International Economic Studies, wiiw.
- Mühlen, Henning & Görg, Holger & Nunnenkamp, Peter, 2010.
"Firm Heterogeneity, Industry Characteristics and Types of FDI: The Case of German FDI in the Czech Republic,"
Open Access Publications from Kiel Institute for the World Economy
37268, Kiel Institute for the World Economy (IfW).
- Holger Görg & Henning Mühlen & Peter Nunnenkamp, 2009. "Firm Heterogeneity, Industry Characteristics and Types of FDI: The Case of German FDI in the Czech Republic," Kiel Working Papers 1544, Kiel Institute for the World Economy.
- Holger Görg & Verena Lauber & Birgit Meyer & Peter Nunnenkamp, 2008.
"Firm Heterogeneity and Choice of Ownership Structure: An Empirical Analysis of German FDI in India,"
Kiel Working Papers
1462, Kiel Institute for the World Economy.
- Holger Görg & Verena Lauber & Birgit Meyer & Peter Nunnenkamp, . "Firm Heterogeneity and Choice of Ownership Structure: An Empirical Analysis of German FDI in India," Discussion Papers 08/39, University of Nottingham, GEP.
- Holger Gorg & Henning Muhlen & Peter Nunnenkamp, 2010.
"FDI Liberalisation, Firm Heterogeneity and Foreign Ownership: German Firm Decisions in Reforming India,"
Journal of Development Studies,
Taylor & Francis Journals, vol. 46(8), pages 1367-1384.
- Görg, Holger & Mühlen, Henning & Nunnenkamp, Peter, 2010. "FDI liberalization, firm heterogeneity and foreign ownership: German firm decisions in reforming India," Proceedings of the German Development Economics Conference, Hannover 2010 35, Verein für Socialpolitik, Research Committee Development Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dieter Stribny).
If references are entirely missing, you can add them using this form.