IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

The Performance of Foreign Affiliates in German Manufacturing: Evidence from a new Database

  • John P. Weche Geluebcke

    ()

    (Institute of Economics, Leuphana University Lueneburg, Germany)

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 was examined not only by comparing unconditional mean values but also by accounting for other determinants and differences across distributions. The analysis revealed a foreign ownership performance premium with regard to productivity, R&D and export intensities, and average wages. Only profitability did not seem to differ from German-owned enterprises. Results were 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 ownership showed considerable heterogeneity of foreign-controlled affiliates in Germany.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.leuphana.de/fileadmin/user_upload/Forschungseinrichtungen/ifvwl/WorkingPapers/wp_216_Upload.pdf
Download Restriction: no

Paper provided by University of Lüneburg, Institute of Economics in its series Working Paper Series in Economics with number 216.

as
in new window

Length: 50 pages
Date of creation: Nov 2011
Date of revision:
Handle: RePEc:lue:wpaper:216
Contact details of provider: Web page: http://leuphana.de/institute/ivwl.html

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Helpman, Elhanan, 2006. "Trade, FDI and the Organization of Firms," CEPR Discussion Papers 5589, C.E.P.R. Discussion Papers.
  2. Rajneesh Narula & Antonello Zanfei, 2003. "Globalisation of Innovation The Role of Multinational Enterprises," DRUID Working Papers 03-15, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  3. Hanousek, Jan & Kočenda, Evžen & Mašika, Michal, 2012. "Firm efficiency: Domestic owners, coalitions, and FDI," Economic Systems, Elsevier, vol. 36(4), pages 471-486.
  4. Heike Belitz, 1996. "Internationalisierung von Forschung und Entwicklung in multinationalen Unternehmen," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 63(16), pages 258-266.
  5. Sabine Engelmann & Michaela Fuchs, 2008. "Bestimmungsfaktoren der Unterschiede einzelbetrieblicher Exportaktivitäten in Ost- und Westdeutschland," ifo Dresden berichtet, Ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 15(01), pages 21-32, 02.
  6. John P. Weche Geluebcke, 2011. "Ownership Patterns and Enterprise Groups in German Structural Business Statistics," Working Paper Series in Economics 212, University of Lüneburg, Institute of Economics.
  7. N/A, 2004. "The World Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 189(1), pages 8-36, July.
  8. Elhanan Helpman & Marc J. Melitz & Stephen R. Yeaple, 2004. "Export Versus FDI with Heterogeneous Firms," American Economic Review, American Economic Association, vol. 94(1), pages 300-316, March.
  9. Robert E. Lipsey & Fredrik Sjoholm, 2003. "Foreign Firms and Indonesian Manufacturing Wages: An Analysis With Panel Data," NBER Working Papers 9417, National Bureau of Economic Research, Inc.
  10. Joachim Wagner, 2010. "Estimated Capital Stock Values for German Manufacturing Enterprises Covered by the Cost Structure Surveys," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 130(3), pages 403-408.
  11. Natália Barbosa & Helen Louri, 2003. "Corporate performance: does ownership matter? A comparison of foreign - and domestic - owned firms in Greece and Portugal," NIMA Working Papers 26, Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho.
  12. Mark Casson, 1987. "The Firm and the Market: Studies on the Multinational Enterprise and the Scope of the Firm," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262031299.
  13. Christian Arndt & Anselm Mattes, 2010. "Cross-Border Mergers and Acquisitions of Multinational Firms. New Firm-Level Evidence," IAW Discussion Papers 62, Institut für Angewandte Wirtschaftsforschung (IAW).
  14. Chiara Criscuolo & Ralf Martin, 2005. "Multinationals and US productivity leadership: evidence from Great Britain," LSE Research Online Documents on Economics 19914, London School of Economics and Political Science, LSE Library.
  15. Griffith, Rachel, 1999. "Using the ARD Establishment Level Data to Look at Foreign Ownership and Productivity in the United Kingdom," Economic Journal, Royal Economic Society, vol. 109(456), pages F416-42, June.
  16. Andrew B. Bernard & Stephen Redding & Peter K. Schott, 2004. "Comparative Advantage and Heterogeneous Firms," CEP Discussion Papers dp0643, Centre for Economic Performance, LSE.
  17. Karolina Ekholm & Rikard Forslid & James Markusen, 2003. "Export-Platform Foreign Direct Investment," NBER Working Papers 9517, National Bureau of Economic Research, Inc.
  18. Joachim Wagner, 2011. "From Estimation Results to Stylized Facts Twelve Recommendations for Empirical Research in International Activities of Heterogeneous Firms," De Economist, Springer, vol. 159(4), pages 389-412, December.
  19. repec:zbw:iwhdps:4-08 is not listed on IDEAS
  20. Bernhard Dachs & Bernd Ebersberger, 2009. "Does foreign ownership matter for the innovative activities of enterprises?," International Economics and Economic Policy, Springer, vol. 6(1), pages 41-57, June.
  21. Melitz, Marc J, 2002. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," CEPR Discussion Papers 3381, C.E.P.R. Discussion Papers.
  22. Michael Fritsch & Bernd Görzig & Ottmar Hennchen & Andreas Stephan, 2004. "European Data Watch: Cost Structure Surveys for Germany," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 124(4), pages 557-566.
  23. Steven Globerman & John C. Ries & Ilan Vertinsky, 1994. "The Economic Performance of Foreign Affiliates in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 27(1), pages 143-56, February.
  24. Caves, Richard E, 1974. "Multinational Firms, Competition, and Productivity in Host-Country Markets," Economica, London School of Economics and Political Science, vol. 41(162), pages 176-93, May.
  25. Sylvia Zühlke & Markus Zwick & Sebastian Scharnhorst & Thomas Wende, 2004. "European Data Watch: The research data centres of the Federal Statistical Office and the statistical offices of the Länder," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 124(4), pages 567-578.
  26. Joachim Wagner, 2009. "The Research Potential of New Types of Enterprise Data based on Surveys from Official Statistics in Germany," Working Paper Series of the German Council for Social and Economic Data 121, German Council for Social and Economic Data (RatSWD).
  27. Esmeralda A. Ramalho & Joaquim J.S. Ramalho & José M.R. Murteira, 2009. "Alternative estimating and testing empirical strategies for fractional regression models," CEFAGE-UE Working Papers 2009_08, University of Evora, CEFAGE-UE (Portugal).
  28. Zadia M. Feliciano & Robert E. Lipsey, 2006. "Foreign Ownership, Wages, And Wage Changes In U.S. Industries, 1987-92," Contemporary Economic Policy, Western Economic Association International, vol. 24(1), pages 74-91, 01.
  29. Stephen Roper & James H. Love & Dolores Añon Hígon, 2006. "The Determinants Of Export Performance: Evidence For Manufacturing Plants In Ireland And Northern Ireland," Scottish Journal of Political Economy, Scottish Economic Society, vol. 53(5), pages 586-615, November.
  30. Martyn Andrews & Lutz Bellmann & Thorsten Schank & Richard Upward, 2009. "The takeover and selection effects of foreign-owned establishments: an analysis using linked employer–employee data," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 145(2), pages 293-317, July.
  31. N/A, 2004. "The World Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 187(1), pages 8-35, January.
  32. Christian Bellak & Michael Pfaffermayr & Michael Wild, 2006. "Firm Performance after Ownership Change: A Matching Estimator Approach," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 52(1), pages 29-54.
  33. Anselm Mattes, 2010. "International M&A: Evidence on Effects of Foreign Takeovers," IAW Discussion Papers 60, Institut für Angewandte Wirtschaftsforschung (IAW).
  34. Christian Bellak, 2004. "How Domestic and Foreign Firms Differ and Why Does It Matter?," Department of Economics Working Papers wuwp087, Vienna University of Economics and Business, Department of Economics.
  35. John H Dunning, 1988. "The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions," Journal of International Business Studies, Palgrave Macmillan, vol. 19(1), pages 1-31, March.
  36. Jutta Günther & Johannes Stephan & Björn Jindra, 2008. "Foreign Subsidiaries in the East German Innovation System - Evidence from Manufacturing Industries," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 59(Supplemen), pages 137-172.
  37. Marion Frenz & Grazia Ietto-Gillies, 2007. "Does Multinationality Affect the Propensity to Innovate? An Analysis of the Third UK Community Innovation Survey," International Review of Applied Economics, Taylor & Francis Journals, vol. 21(1), pages 99-117.
  38. Anja Malchin & Ramona Voshage, 2009. "Official Firm Data for Germany," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 129(3), pages 501-513.
  39. John Philipp Weche Gelübcke, 2013. "Foreign ownership and firm performance in German services," The Service Industries Journal, Taylor & Francis Journals, vol. 33(15-16), pages 1564-1598, December.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:lue:wpaper:216. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Wagner)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.