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

Author Info

Listed author(s):
  • 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.

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File URL: http://www.leuphana.de/fileadmin/user_upload/Forschungseinrichtungen/ifvwl/WorkingPapers/wp_221_Upload.pdf
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Paper provided by University of Lüneburg, Institute of Economics in its series Working Paper Series in Economics with number 221.

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Length: 38 pages
Date of creation: Dec 2011
Handle: RePEc:lue:wpaper:221
Contact details of provider: Web page: http://leuphana.de/institute/ivwl.html

Keywords: Foreign ownership; firm survival; Germany;

Other versions of this item:

Find related papers by JEL classification:
  • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
  • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

This paper has been announced in the following NEP Reports:

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  5. Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, vol. 50(3), pages 649-670, May.
  6. John P. Weche Geluebcke, 2011. "Foreign Ownership and Firm Performance in German Services: First Evidence based on Official Statistics," Working Paper Series in Economics 213, University of Lüneburg, Institute of Economics.
  7. Colombo, Massimo G. & Delmastro, Marco, 2000. "A note on the relation between size, ownership status and plant's closure: sunk costs vs. strategic size liability," Economics Letters, Elsevier, vol. 69(3), pages 421-427, December.
  8. Alexander Vogel & Joachim Wagner, 2010. "Higher productivity in importing German manufacturing firms: self-selection, learning from importing, or both?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 145(4), pages 641-665, January.
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  16. John Weche Gelübcke, 2013. "The performance of foreign affiliates in German manufacturing: evidence from a new database," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 149(1), pages 151-182, March.
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  20. Hirsch, Seev & Lev, Baruch, 1971. "Sales Stabilization Through Export Diversification," The Review of Economics and Statistics, MIT Press, vol. 53(3), pages 270-277, August.
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  23. Laura Alfaro & Maggie Xiaoyang Chen, 2012. "Surviving the Global Financial Crisis: Foreign Ownership and Establishment Performance," American Economic Journal: Economic Policy, American Economic Association, vol. 4(3), pages 30-55, August.
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Cited by:

  1. Wagner Joachim & Gelübcke John P. Weche, 2014. "Risk or Resilience? The Role of Trade Integration and Foreign Ownership for the Survival of German Enterprises During the Crisis 2008–2010," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 234(6), pages 757-774, December.
  2. 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, 05.
  3. 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.
  4. 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.
  5. 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.
  6. Jaanika Meriküll & Tairi Rõõm, "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.
  7. 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, 04.
  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. repec:spr:astaws:v:11:y:2017:i:1:d:10.1007_s11943-017-0200-1 is not listed on IDEAS
  10. 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.
  11. 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.
  12. repec:kap:sbusec:v:49:y:2017:i:2:d:10.1007_s11187-016-9817-7 is not listed on IDEAS
  13. 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.

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