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The impact of locating production abroad on activities at home

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  • Kleinert, Jörn
  • Toubal, Farid

Abstract

We analyze whether firms that establish their first affiliate in a foreign country have a different pattern of growth in output, employment, capital and productivity than firms that remain national. We use firm-level data on German multinational activities and appropriate matching techniques to compare the performance of German multinational firms with their national counterparts. We do not find a negative effect of firm's decision to establish a foreign affiliate on growth in its employment at home. There is also no significant effect of the internationalization decision of German firms on other measures of activities at home. --

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Bibliographic Info

Paper provided by University of Tübingen, School of Business and Economics in its series Tübinger Diskussionsbeiträge with number 314.

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Date of creation: 2007
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Handle: RePEc:zbw:tuedps:314

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Keywords: multinational firms; employment; matching;

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  1. Barba Navaretti, Giorgio & Castellani, Davide & Disdier, Anne-Célia, 2006. "How Does Investing in Cheap Labour Countries Affect Performance at Home? France and Italy," CEPR Discussion Papers 5765, C.E.P.R. Discussion Papers.
  2. Alexander Hijzen & Sébastien Jean & Thierry Mayer, 2011. "The effects at home of initiating production abroad: evidence from matched French firms," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 147(3), pages 457-483, September.
  3. Barba Navaretti, Giorgio & Castellani, Davide, 2004. "Investments Abroad and Performance at Home: Evidence from Italian Multinationals," CEPR Discussion Papers 4284, C.E.P.R. Discussion Papers.
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