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Foreign Ownership and Firm Survival: First Evidence for Enterprises in Germany

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  • Joachim Wagner
  • John Philipp Weche Gelübcke

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 the survival of enterprises 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.

Suggested Citation

  • Joachim Wagner & John Philipp Weche Gelübcke, 2012. "Foreign Ownership and Firm Survival: First Evidence for Enterprises in Germany," International Economics, CEPII research center, issue 132, pages 117-139.
    • Handle: RePEc:cii:cepiie:2012-q4-132-4
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    More about this item

    Keywords

    Foreign Ownership; Firm Survival; Germany;
    All these keywords.

    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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