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The performance of foreign affiliates in German manufacturing: evidence from a new database

  • John Weche Gelübcke

    ()

This study presents the first investigation into the performance of foreign-controlled enterprises in German manufacturing, based on new micro-data from official statistics. A comprehensive set of performance variables is examined, not only by comparing unconditional mean values but also by accounting for other determinants and differences across distributions. The analysis reveals a foreign ownership performance premium with regard to productivity, research and development, export intensities, and average wages. Only profitability seems not to differ from German-owned enterprises. Results are verified by varying comparison groups of indigenous firms and separating for high- and low-tech sectors. Furthermore, a breakdown by country of origin and type of group head shows considerable heterogeneity within the group of foreign-controlled affiliates in Germany. Copyright Kiel Institute 2013

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File URL: http://hdl.handle.net/10.1007/s10290-012-0142-1
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Article provided by Springer in its journal Review of World Economics.

Volume (Year): 149 (2013)
Issue (Month): 1 (March)
Pages: 151-182

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Handle: RePEc:spr:weltar:v:149:y:2013:i:1:p:151-182
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