Exports, foreign direct investment, and productivity: Evidence from German firm level data
This paper presents the first empirical test with German establishment level data of a hypothesis derived by Helpman, Melitz and Yeaple in a model that explains the decision of heterogeneous firms to serve foreign markets either trough exports or foreign direct investment: only the more productive firms choose to serve the foreign markets, and the most productive among this group will further choose to serve these markets via foreign direct investments. Using a non-parametric test for first order stochastic dominance it is shown that, in line with this hypothesis, the productivity distribution of foreign direct investors dominates that of exporters, which in turn dominates that of national market suppliers.
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- Joachim Wagner, 2005.
"Exports and Productivity: A survey of the evidence from firm level data,"
Working Paper Series in Economics
4, University of Lüneburg, Institute of Economics.
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- Joachim Wagner, 2005. "Exports and Productivity: A Survey of the Evidence fro Firm Level Data," International Trade 0504005, EconWPA.
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"Exports, International Investment, and Plant Performance: Evidence from a Non-Parametric Test,"
Discussion Papers of DIW Berlin
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- Girma, Sourafel & Gorg, Holger & Strobl, Eric, 2004. "Exports, international investment, and plant performance: evidence from a non-parametric test," Economics Letters, Elsevier, vol. 83(3), pages 317-324, June.
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"Heterogeneity and the FDI versus export decision of Japanese manufacturers,"
Journal of the Japanese and International Economies,
Elsevier, vol. 17(4), pages 448-467, December.
- Keith Head & John Ries, 2003. "Heterogeneity and the FDI versus Export Decision of Japanese Manufacturers," NBER Working Papers 10052, National Bureau of Economic Research, Inc.
- Delgado, Miguel A. & Farinas, Jose C. & Ruano, Sonia, 2002. "Firm productivity and export markets: a non-parametric approach," Journal of International Economics, Elsevier, vol. 57(2), pages 397-422, August.
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