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It pays to be active on many foreign markets Profitability in German multi-market exporters and importers from manufacturing industries


  • Joachim Wagner

    (Leuphana University Lueneburg, Germany)


This paper provides the first empirical evidence on the link between the number of foreign markets (where a market is defined as the combination of one traded good and one country traded with) a firm is active on and its profitability. We find that in German manufacturing industries the profitability of a firm increases when the number of markets a firm exports to or imports from increases. The extra costs associated with being active on more foreign markets tend to be smaller than the extra benefits. It pays to be active on many foreign markets.

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  • Joachim Wagner, 2017. "It pays to be active on many foreign markets Profitability in German multi-market exporters and importers from manufacturing industries," Working Paper Series in Economics 373, University of Lüneburg, Institute of Economics.
  • Handle: RePEc:lue:wpaper:373

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    1. Joachim Wagner, 2016. "A survey of empirical studies using transaction level data on exports and imports," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(1), pages 215-225, February.
    2. Joachim Wagner, 2011. "Exports and Firm Characteristics in Germany: New Evidence from Representative Panel Data," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 57(2), pages 107-143.
    3. 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.
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    More about this item


    Exports; Imports; Number of foreign markets; Profitability; Germany;
    All these keywords.

    JEL classification:

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

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