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Foreign Ownership and Firm Survival: First evidence for enterprises in Germany

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  • Joachim Wagner

    () (Institute of Economics, Leuphana University of Lüneburg, Germany)

  • John P. Weche Geluebcke

    () (Institute of Economics, Leuphana University of Lüneburg, Germany)

Abstract

This paper documents the relationship between foreign ownership and firm survival for enterprises in Germany using unique tailor-made new representative data that merge information from surveys performed by the Statistical Offices, from administrative data collected by the Tax Authorities and from a commercial data provider. It contributes to the literature by providing the first evidence on the role of foreign ownership for firm survival in Germany, one of the most important destination countries for foreign direct investments. Our micro-econometric analysis reveals a ceteris paribus higher risk of exit for foreign owned firms in West Germany but not in East Germany.

Suggested Citation

  • Joachim Wagner & John P. Weche Geluebcke, 2011. "Foreign Ownership and Firm Survival: First evidence for enterprises in Germany," Working Paper Series in Economics 221, University of Lüneburg, Institute of Economics.
    • Handle: RePEc:lue:wpaper:221
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    Citations

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    Cited by:

    1. 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.
    2. 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..
    3. Horst Raff & Joachim Wagner, 2014. "Foreign Ownership and the Extensive Margins of Exports: Evidence for Manufacturing Enterprises in Germany," The World Economy, Wiley Blackwell, vol. 37(5), pages 579-591, May.
    4. Jirjahn, Uwe, 2017. "Foreign Ownership and Intra-Firm Union Density in Germany," GLO Discussion Paper Series 149, Global Labor Organization (GLO).
    5. Jaanika Merikull & Tairi Room, "undated". "Are foreign-owned firms different ? Comparision of employment volatility and elasticity of labour demand," Bank of Estonia Working Papers wp2014-1, Bank of Estonia.
    6. Chiara Franco & John P. Weche Gelübcke, 2015. "The Death of German Firms: What Role for Foreign Direct Investment?," The World Economy, Wiley Blackwell, vol. 38(4), pages 677-703, April.
    7. repec:prg:jnlpep:v:preprint:id:678:p:1-16 is not listed on IDEAS
    8. Ahmed Fayez Abdelgouad & Christian Pfeifer & John P Weche Gelübcke, 2015. "Ownership structure and firm performance in the Egyptian manufacturing sector," Economics Bulletin, AccessEcon, vol. 35(4), pages 2197-2212.
    9. FERRAGINA, Anna Maria & MAZZOTTA, Fernanda, 2017. "Firm Employment Resilience and FDI: Evidence from Italy," CELPE Discussion Papers 152, CELPE - Centre of Labour Economics and Economic Policy, University of Salerno, Italy.
    10. Adalgiso Amendola & Anna Maria Ferragina & Rosanna Pittiglio & Filippo Reganati, 2012. "Are exporters and multinational firms more resilient over a crisis? First evidence for manufacturing enterprises in Italy," Economics Bulletin, AccessEcon, vol. 32(3), pages 1914-1926.
    11. repec:spr:astaws:v:11:y:2017:i:1:d:10.1007_s11943-017-0200-1 is not listed on IDEAS
    12. Verena Dill & Uwe Jirjahn, 2014. "Foreign Owners and Perceived Job Insecurity in Germany: Evidence from Linked Employer-Employee Data," Research Papers in Economics 2014-09, University of Trier, Department of Economics.
    13. Verena Dill & Uwe Jirjahn, 2013. "Foreign Owners and the Quality of Industrial Relations in Germany," Research Papers in Economics 2013-07, University of Trier, Department of Economics.
    14. repec:kap:sbusec:v:49:y:2017:i:2:d:10.1007_s11187-016-9817-7 is not listed on IDEAS
    15. Joachim Wagner, 2014. "Effect of international activity on firm performance," IZA World of Labor, Institute for the Study of Labor (IZA), pages 1-47, May.
    16. Rõõm, Tairi & Meriküll, Jaanika, 2014. "Are foreign-owned firms different? Comparison of employment volatility and elasticity of labour demand," Working Paper Series 1704, European Central Bank.

    More about this item

    Keywords

    Foreign ownership; firm survival; Germany;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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