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Extensive margins of imports, productivity and profitability: First evidence for manufacturing enterprises in Germany

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  • Joachim Wagner

    (Leuphana University Lueneburg)

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 two dimensions of firm performance, productivity and 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.

Suggested Citation

  • Joachim Wagner, 2014. "Extensive margins of imports, productivity and profitability: First evidence for manufacturing enterprises in Germany," Economics Bulletin, AccessEcon, vol. 34(3), pages 1669-1678.
    • Handle: RePEc:ebl:ecbull:eb-14-00466
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    References listed on IDEAS

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    Cited by:

    1. Redha Fares & Amélie Guillin & Claude Mathieu, 2020. "Failing and exporting firms: a paradox?," Erudite Working Paper 2020-08, Erudite.
    2. Krenz, Astrid, 2019. "Firm heterogeneity, productivity, and the extensive margins of trade - differences between manufacturing firms in East and West Germany," University of Göttingen Working Papers in Economics 369, University of Goettingen, Department of Economics.
    3. Joachim Wagner, 2014. "New Data from Official Statistics for Imports and Exports of Goods by German Enterprises," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 134(3), pages 371-378.
    4. Redha Fares, 2022. "Bankruptcy, Performance and Market Selection: Evidence from Firms in France," Erudite Ph.D Dissertations, Erudite, number ph22-01 edited by Claude Mathieu, December.

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    More about this item

    Keywords

    Imports; intensive margins; profitability; Germany;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade

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