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Cross-Border and Foreign-Affiliate Sales of Services: Evidence From German Micro-Data

Author

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  • Kelle, Markus
  • Kleinert, Jörn
  • Raff, Horst
  • Toubal, Farid

Abstract

We merge German balance-of-payments and foreign-affiliate-trade statistics to obtain data about trade in commercial services at the firm level. We use these data to study export market participation and the choice of export mode: cross-border versus foreign-affiliate sales. We find that for firms in our sample productivity is both a statistically significant and economically important determinant of the export participation and export mode choice. We also identify the role of industry- and country-specific determinants.

Suggested Citation

  • Kelle, Markus & Kleinert, Jörn & Raff, Horst & Toubal, Farid, 2012. "Cross-Border and Foreign-Affiliate Sales of Services: Evidence From German Micro-Data," CEPR Discussion Papers 9016, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:9016
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    References listed on IDEAS

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    1. Rudrani Bhattacharya & Ila Patnaik & Ajay Shah, 2012. "Export Versus FDI in Services," The World Economy, Wiley Blackwell, vol. 35(1), pages 61-78, January.
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    6. Henk Kox & Hugo Rojas-Romagosa, 2010. "Exports and Productivity Selection Effects for Dutch Firms," De Economist, Springer, vol. 158(3), pages 295-322, September.
    7. Nocke, Volker & Yeaple, Stephen, 2007. "Cross-border mergers and acquisitions vs. greenfield foreign direct investment: The role of firm heterogeneity," Journal of International Economics, Elsevier, vol. 72(2), pages 336-365, July.
    8. Markus Kelle & Jörn Kleinert, 2010. "German Firms in Service Trade," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 56(1), pages 51-72.
    9. Temouri, Yama & Vogel, Alexander & Wagner, Joachim, 2013. "Self-selection into export markets by business services firms – Evidence from France, Germany and the United Kingdom," Structural Change and Economic Dynamics, Elsevier, vol. 25(C), pages 146-158.
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    11. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
    12. Hildegunn Kyvik Nordås & Henk Kox, 2009. "Quantifying Regulatory Barriers to Services Trade," OECD Trade Policy Papers 85, OECD Publishing.
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    15. Carolina Lennon, 2008. "Trade in services: Cross-border trade vs commercial presence. Evidence of complementarity," PSE Working Papers halshs-00586217, HAL.
    16. Horst Raff & Marc von der Ruhr, 2007. "Foreign Direct Investment in Producer Services: Theory and Empirical Evidence," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 53(3), pages 299-321.
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    Citations

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    Cited by:

    1. MORIKAWA Masayuki, 2015. "Service Trade and Productivity: Firm-level evidence from Japan," Discussion papers 15030, Research Institute of Economy, Trade and Industry (RIETI).
    2. Elena Biewen & Daniela Harsch & Julia Spies, 2012. "The Determinants of Service Imports: The Role of Cost Pressure and Financial Constraints," IAW Discussion Papers 90, Institut für Angewandte Wirtschaftsforschung (IAW).
    3. Stefano Federico & Enrico Tosti, 2017. "Exporters and Importers of Services: Firm-Level Evidence on Italy," The World Economy, Wiley Blackwell, vol. 40(10), pages 2078-2096, October.
    4. Hatzigeorgiou, Andreas & Lodefalk, Magnus, 2015. "The Role of Foreign Networks for Firm Export of Services," Working Papers 2015:6, Örebro University, School of Business.
    5. Vogel , Alexander & Wagner, Joachim, 2012. "Innovation and Exports of German Business Services Enterprises: First evidence from a new type of firm data," Working Paper Series in Economics and Institutions of Innovation 285, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    6. Francois, Joseph, 2015. "Modes of Supply for US Exports of Services," Papers 883, World Trade Institute.
    7. Markus Kelle, 2012. "Crossing Industry Borders: German Manufacturers as Services Exporters," wiiw Working Papers 92, The Vienna Institute for International Economic Studies, wiiw.
    8. Francesco Bripi & David Loschiavo & Davide Revelli, 2017. "Services trade and credit frictions: evidence from matched bank-firm data," Temi di discussione (Economic working papers) 1110, Bank of Italy, Economic Research and International Relations Area.
    9. Iza Lejárraga & Harald Oberhofer, 2015. "Performance of small- and medium-sized enterprises in services trade: evidence from French firms," Small Business Economics, Springer, vol. 45(3), pages 673-702, October.
    10. Markus Kelle, 2012. "Crossing Industrial Borders: German Manufacturers as Services Exporters," Development Working Papers 329, Centro Studi Luca d'Agliano, University of Milano, revised 27 Mar 2012.
    11. Dincer, Nergiz & Tekin-Koru, Ayca, 2014. "A League of Their Own: Services Exporters within Goods Exporters," MPRA Paper 53294, University Library of Munich, Germany.
    12. Shafik Hebous & Niels Johannesen, 2015. "At Your Service! The Role of Tax Havens in International Trade with Services," CESifo Working Paper Series 5414, CESifo Group Munich.
    13. Konstantins Benkovskis & Olegs Tkacevs, 2015. "Everything you always wanted to know about Latvia's service exporters (but were afraid to ask)," Working Papers 2015/06, Latvijas Banka.

    More about this item

    Keywords

    commercial presence; firm heterogeneity; foreign direct investment; international trade; multinational enterprises; supply modes; trade in services;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F15 - International Economics - - Trade - - - Economic Integration
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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