Exports, Foreign Direct Investment, and Productivity: Evidence from German Firm Level Data
AbstractThis paper presents the first empirical test with German establishment level data of a hypothesis derived by Helpman, Melitz and Yeaple in a model that explains the decision of heterogeneous firms to serve foreign markets either trough 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.
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Bibliographic InfoPaper provided by EconWPA in its series International Trade with number 0504006.
Length: 15 pages
Date of creation: 20 Apr 2005
Date of revision:
Note: Type of Document - pdf; pages: 15
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Exports; Foreign Direct Investment; Productivity; Firm level data; Germany; Heterogeneous firms;
Other versions of this item:
- Joachim Wagner, 2006. "Exports, foreign direct investment, and productivity: evidence from German firm level data," Applied Economics Letters, Taylor and Francis Journals, vol. 13(6), pages 347-349.
- Wagner, Joachim, 2005. "Exports, foreign direct investment, and productivity: Evidence from German firm level data," HWWA Discussion Papers 318, Hamburg Institute of International Economics (HWWA).
- Joachim Wagner, 2005. "Exports, foreign direct investment, and productivity: Evidence from German firm level data," Working Paper Series in Economics 8, University of Lüneburg, Institute of Economics.
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
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- Keith Head & John Ries, 2003.
"Heterogeneity and the FDI versus Export Decision of Japanese Manufacturers,"
NBER Working Papers
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- Elhanan Helpman & Marc J. Melitz & Stephen R. Yeaple, 2004.
"Export Versus FDI with Heterogeneous Firms,"
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- Sourafel Girma & Richard Kneller & Mauro Pisu, 2005. "Exports versus FDI: An Empirical Test," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 141(2), pages 193-218, July.
- 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.
- 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.
- Wagner, Joachim, 2005.
"Exports and Productivity : A survey of the evidence from firm level data,"
HWWA Discussion Papers
319, Hamburg Institute of International Economics (HWWA).
- Joachim Wagner, 2007. "Exports and Productivity: A Survey of the Evidence from Firm-level Data," The World Economy, Wiley Blackwell, vol. 30(1), pages 60-82, 01.
- Joachim Wagner, 2005. "Exports and Productivity: A survey of the evidence from firm level data," Working Paper Series in Economics 4, University of Lüneburg, Institute of Economics.
- Joachim Wagner, 2005. "Exports and Productivity: A Survey of the Evidence fro Firm Level Data," International Trade 0504005, EconWPA.
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