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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.

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

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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

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