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Exports, Imports and Firm Survival: First Evidence for Manufacturing Enterprises in Germany

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  • Wagner, Joachim

    () (Leuphana University Lüneburg)

Abstract

This paper documents the relationship between firm survival and three types of international trade activities - exports, imports and two-way trade. It uses unique new representative data for manufacturing enterprises from Germany, one of the leading actors on the world market for goods, that merge information from surveys performed by the Statistical Offices and administrative data collected by the Tax Authorities. It contributes to the literature by providing the first evidence on the role of imports and two-way trading for firm survival in a highly developed country. Descriptive statistics and regression analysis (with and without explicitly taking the rare events nature of firm exit into account) point to a strong positive link between firm survival on the one hand and imports and two-way trading on the other hand, while exporting alone does not play a role for exiting the market or not.

Suggested Citation

  • Wagner, Joachim, 2011. "Exports, Imports and Firm Survival: First Evidence for Manufacturing Enterprises in Germany," IZA Discussion Papers 5924, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp5924
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    Cited by:

    1. 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..
    2. Joachim Wagner, 2013. "Micro-econometric studies of international firm activities and firm performance: introduction by guest editor," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 149(1), pages 1-3, March.
    3. M. Grazzi & C. Piccardo & C. Vergari, 2017. "Building a firm level dataset for the analysis of industrial dynamics and demography," Working Papers wp2003, Dipartimento Scienze Economiche, Universita' di Bologna.
    4. Türkcan, Kemal, 2016. "On the role of vertical differentiation in enhancing survival of export flows: Evidence from a developing country," MPRA Paper 71023, University Library of Munich, Germany.
    5. Mas-Verdú, Francisco & Ribeiro-Soriano, Domingo & Roig-Tierno, Norat, 2015. "Firm survival: The role of incubators and business characteristics," Journal of Business Research, Elsevier, vol. 68(4), pages 793-796.
    6. Sharma, Chandan & Mishra, Ritesh Kumar, 2015. "International trade and performance of firms: Unraveling export, import and productivity puzzle," The Quarterly Review of Economics and Finance, Elsevier, vol. 57(C), pages 61-74.
    7. repec:gam:jecomi:v:6:y:2018:i:2:p:26-:d:140097 is not listed on IDEAS
    8. Stirbat, Liviu & Record, Richard & Nghardsaysone, Konesawang, 2015. "The Experience of Survival: Determinants of Export Survival in Lao PDR," World Development, Elsevier, vol. 76(C), pages 82-94.
    9. Stefano Costa & Carmine Pappalardo & Claudio Vicarelli, 2017. "Internationalization choices and Italian firm performance during the crisis," Small Business Economics, Springer, vol. 48(3), pages 753-769, March.
    10. A. Arrighetti & F. Landini & A. Lasagni, 2015. "Firms’economic crisis and firm exit: do intangibles matters?," Economics Department Working Papers 2015-EP04, Department of Economics, Parma University (Italy).
    11. Toraganlı, Nazlı & Yazgan, M. Ege, 2016. "Exchange rates and firm survival: An examination with Turkish firm-level data," Economic Systems, Elsevier, vol. 40(3), pages 433-443.
    12. Díaz-Mora, Carmen & Córcoles, David & Gandoy, Rosario, 2015. "Exit from exporting: Does being a two-way trader matter?," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy (IfW), vol. 9, pages 1-27.
    13. Aloysius Gunadi Brata & Henri L. F. de Groot & Wouter Zant, 2018. "Shaking up the Firm Survival: Evidence from Yogyakarta (Indonesia)," Economies, MDPI, Open Access Journal, vol. 6(2), pages 1-14, April.
    14. Sanne Hiller & Philipp J.H. Schroeder & Allan Sorensen, 2013. "Export market exit and firm survival: theory and first evidence," Working Paper Series in Economics 262, University of Lüneburg, Institute of Economics.
    15. repec:spr:astaws:v:11:y:2017:i:1:d:10.1007_s11943-017-0200-1 is not listed on IDEAS
    16. repec:eee:riibaf:v:44:y:2018:i:c:p:434-458 is not listed on IDEAS
    17. Huong Vu & Steven Lim, 2013. "Exports and Firm survival: The first evidence from Vietnam private manufacturing SMEs," Economics Bulletin, AccessEcon, vol. 33(2), pages 1259-1268.
    18. repec:jns:jbstat:v:238:y:2018:i:2:p:157-182:n:1 is not listed on IDEAS
    19. Landini, Fabio & Arrighetti, Alessandro & Lasagni, Andrea, 2015. "Economic Crisis and Firm Exit: Do Intangibles Matter?," SEP Working Papers 2015/10, LUISS School of European Political Economy.
    20. Wagner Joachim, 2018. "Active on Many Foreign Markets: A Portrait of German Multi-market Exporters and Importers from Manufacturing Industries," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 238(2), pages 157-182, April.

    More about this item

    Keywords

    imports; firm survival; exports;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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