IDEAS home Printed from https://ideas.repec.org/a/iza/izawol/journl2019n47.html
   My bibliography  Save this article

Effect of international activity on firm performance

Author

Listed:
  • Joachim Wagner

    (Leuphana University, Lüneburg, and IZA, Germany)

Abstract

There is evidence that better performing firms tend to enter international markets. Internationally active firms are larger, more productive, and pay higher wages than other firms in the same industry. Positive performance effects of engaging in international activity are found especially in firms from less advanced economies that interact with partners from more advanced economies. Lowering barriers to the international division of labor should therefore be part of any pro-growth policy.

Suggested Citation

  • Joachim Wagner, 2019. "Effect of international activity on firm performance," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-47, November.
    • Handle: RePEc:iza:izawol:journl:2019:n:47
    as

    Download full text from publisher

    File URL: https://wol.iza.org/uploads/articles/47/pdfs/effect-of-international-activity-on-firm-performance.pdf
    Download Restriction: no
    File URL: https://wol.iza.org/articles/effect-of-international-activity-on-firm-performance
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Joachim Wagner, 2016. "Exports, Imports and Profitability: First Evidence for Manufacturing Enterprises," World Scientific Book Chapters, in: Microeconometrics of International Trade, chapter 9, pages 311-338, World Scientific Publishing Co. Pte. Ltd..
    2. Joachim Wagner, 2016. "Exports and Productivity: A Survey of the Evidence from Firm Level Data," World Scientific Book Chapters, in: Microeconometrics of International Trade, chapter 1, pages 3-41, World Scientific Publishing Co. Pte. Ltd..
    3. David Greenaway & Richard Upward & Peter Wright (ed.), 2008. "Globalisation and Labour Market Adjustment," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-58238-5, December.
    4. Andrew B. Bernard & J. Bradford Jensen & Stephen J. Redding & Peter K. Schott, 2012. "The Empirics of Firm Heterogeneity and International Trade," Annual Review of Economics, Annual Reviews, vol. 4(1), pages 283-313, July.
    5. Tarlok Singh, 2010. "Does International Trade Cause Economic Growth? A Survey," The World Economy, Wiley Blackwell, vol. 33(11), pages 1517-1564, November.
    6. Thorsten Schank & Claus Schnabel & Joachim Wagner, 2016. "Do Exporters Really Pay Higher Wages? First Evidence from German Linked Employer–Employee Data," World Scientific Book Chapters, in: Microeconometrics of International Trade, chapter 5, pages 177-213, World Scientific Publishing Co. Pte. Ltd..
    7. Hijzen, Alexander & Martins, Pedro S. & Schank, Thorsten & Upward, Richard, 2013. "Foreign-owned firms around the world: A comparative analysis of wages and employment at the micro-level," European Economic Review, Elsevier, vol. 60(C), pages 170-188.
    8. Joachim Wagner & John Philipp Weche Gelübcke, 2012. "Foreign Ownership and Firm Survival: First Evidence for Enterprises in Germany," International Economics, CEPII research center, issue 132, pages 117-139.
    9. Helpman, Elhanan, 2011. "Understanding Global Trade," Economics Books, Harvard University Press, number 9780674060784, Spring.
    10. Thorsten Schank & Claus Schnabel & Joachim Wagner, 2016. "Higher Wages in Exporting Firms: Self-selection, Export Effect, or Both? First Evidence from Linked Employer–Employee Data," World Scientific Book Chapters, in: Microeconometrics of International Trade, chapter 6, pages 215-241, World Scientific Publishing Co. Pte. Ltd..
    11. Robert C. Feenstra, 2010. "Offshoring in the Global Economy: Microeconomic Structure and Macroeconomic Implications," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262013835, April.
    12. Thorsten Schank & Claus Schnabel & Joachim Wagner, 2008. "Higher Wages in Exporting Firms: Self-selection, Export Effect, or Both? First Evidence from German Linked Employer-Employee Data," Working Paper Series in Economics 74, University of Lüneburg, Institute of Economics.
    13. Joachim Wagner, 2011. "Productivity and International Firm Activities: What do we know?," Working Paper Series in Economics 194, University of Lüneburg, Institute of Economics.
    14. Joachim Wagner, 2016. "International Trade and Firm Performance: A Survey of Empirical Studies since 2006," World Scientific Book Chapters, in: Microeconometrics of International Trade, chapter 2, pages 43-87, World Scientific Publishing Co. Pte. Ltd..
    15. Wagner Joachim, 2019. "Does It Pay to Be Active on Many Foreign Markets? Profitability in German Multi-Market Exporters and Importers from Manufacturing Industries," Review of Economics, De Gruyter, vol. 70(1), pages 1-13, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Surabhi Somya & Madhuri Saripalle, 2023. "The Determinants of Firm’s Growth in the Telecommunication Services Industry: Empirical Evidence from India," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 21(1), pages 193-211, March.
    2. Lawless, Martina & Kren, Janez, 2023. "Structure of international goods trade for Ireland and Northern Ireland," Research Series, Economic and Social Research Institute (ESRI), number SUSTAT117.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Joachim Wagner, 2012. "Average wage, qualification of the workforce and export performance in German enterprises: evidence from KombiFiD data [Durchschnittslohn, Belegschaftsqualifikation und Exporttätigkeit in deutschen," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 45(2), pages 161-170, July.
    2. Achim Schmillen, 2016. "The Exporter Wage Premium Reconsidered—Destinations, Distances and Linked Employer–Employee Data," Review of Development Economics, Wiley Blackwell, vol. 20(2), pages 531-546, May.
    3. Joachim Wagner, 2014. "Is export diversification good for profitability? First evidence for manufacturing enterprises in Germany," Applied Economics, Taylor & Francis Journals, vol. 46(33), pages 4083-4090, November.
    4. Hernández, Pedro, 2012. "Is there a producer quality wage premium similar to the exporter wage premium?," MPRA Paper 41082, University Library of Munich, Germany.
    5. Hernández, Pedro Jesús, 2012. "Is there a Producer Quality Wage Premium similar to the Exporter Wage Premium," UMUFAE Economics Working Papers 28517, DIGITUM. Universidad de Murcia.
    6. Richter, Philipp M. & Schiersch, Alexander, 2017. "CO2 emission intensity and exporting: Evidence from firm-level data," European Economic Review, Elsevier, vol. 98(C), pages 373-391.
    7. Görg, Holger & Hanley, Aoife, 2017. "Globalization: Implications for firms in Germany," KCG Working Papers 5, Kiel Centre for Globalization (KCG).
    8. Cenk Gokce ADAS, 2016. "Exporting Firms, Productivity And Profitabiliy: A Survey Of The Evidence From Manufacturing Industries," Proceedings of International Academic Conferences 3606362, International Institute of Social and Economic Sciences.
    9. Joachim Wagner, 2016. "Exports, Imports and Profitability: First Evidence for Manufacturing Enterprises," World Scientific Book Chapters, in: Microeconometrics of International Trade, chapter 9, pages 311-338, World Scientific Publishing Co. Pte. Ltd..
    10. Joachim Wagner & Yama Temouri, 2021. "Do Outliers and Unobserved Heterogeneity Explain the Exporter Productivity Premium? Evidence from France, Germany and the United Kingdom," World Scientific Book Chapters, in: Joachim Wagner (ed.), MICROECONOMETRIC STUDIES OF FIRMS’ IMPORTS AND EXPORTS Advanced Methods of Analysis and Evidence from German Enterprises, chapter 13, pages 223-236, World Scientific Publishing Co. Pte. Ltd..
    11. Wolszczak-Derlacz Joanna, 2018. "The Analysis of Firms’ Involvement in Internationalisation And Determinants of its Intensity – An Analysis For Developing and Post-Transition Economies," Economics and Business Review, Sciendo, vol. 4(1), pages 44-63, April.
    12. Łukasz Matuszczak, 2019. "What are the determinants of international trade in services? Evidence from firm-level data for Poland," Working Papers 2019-20, Faculty of Economic Sciences, University of Warsaw.
    13. Joachim Wagner, 2009. "Exporte und Firmenerfolg: Welche Firmen profitieren wie vom internationalen Handel?," AStA Wirtschafts- und Sozialstatistisches Archiv, Springer;Deutsche Statistische Gesellschaft - German Statistical Society, vol. 3(2), pages 109-122, October.
    14. Greaney, Theresa M. & Tanaka, Ayumu, 2021. "Foreign Ownership, Exporting and Gender Wage Gaps: Evidence from Japanese Linked Employer-Employee Data," Journal of the Japanese and International Economies, Elsevier, vol. 61(C).
    15. Joachim Wagner, 2016. "Exports, Imports and Firm Survival: First Evidence for Manufacturing Enterprises in Germany," World Scientific Book Chapters, in: Microeconometrics of International Trade, chapter 10, pages 341-367, World Scientific Publishing Co. Pte. Ltd..
    16. Joachim Wagner & John P. Weche Gelübcke, 2016. "Risk or Resilience? The Role of Trade Integration and Foreign Ownership for the Survival of German Enterprises during the Crisis 2008–2010," World Scientific Book Chapters, in: Microeconometrics of International Trade, chapter 11, pages 369-397, World Scientific Publishing Co. Pte. Ltd..
    17. Pierluigi Montalbano & Silvia Nenci & Carlo Pietrobelli, 2018. "Opening and linking up: firms, GVCs, and productivity in Latin America," Small Business Economics, Springer, vol. 50(4), pages 917-935, April.
    18. Joachim Wagner, 2021. "With a little help from my website. Firm survival and web presence in times of COVID-19 – Evidence from 10 European countries," Economics Bulletin, AccessEcon, vol. 41(3), pages 1898-1906.
    19. Valeria Gattai & Piergiovanna Natale & Francesca Rossi, 2022. "Board Diversity and Outward FDI: Evidence from Europe," Working Papers 491, University of Milano-Bicocca, Department of Economics, revised Mar 2022.
    20. Giovannetti, Giorgia & Marvasi, Enrico, 2016. "Food exporters in global value chains: Evidence from Italy," Food Policy, Elsevier, vol. 59(C), pages 110-125.

    More about this item

    Keywords

    firms; trade; offshoring; productivity; employment; wages; survival;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izawol:journl:2019:n:47. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Institute of Labor Economics (IZA) (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.