Reference : Exports versus FDI in German Manufacturing: Firm Performance and Participation in Int...
Scientific journals : Article
Business & economic sciences : International economics
http://hdl.handle.net/10993/7314
Exports versus FDI in German Manufacturing: Firm Performance and Participation in International Markets
English
Arnold, Jens Matthias []
Hussinger, Katrin mailto [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA) >]
2010
Review of World Economics
Springer Science & Business Media B.V.
Yes (verified by ORBilu)
International
1610-2878
[en] Exports ; FDI ; Heterogeneous Firms ; Total Factor Productivity
[en] This paper tests some of the predictions of recent advances in trade theory
that have focused on different trade patterns of firms within the same
sector. Helpman, Melitz and Yeaple (2005) develop a model in which
innate productivity differences between firms determine the degree of
international engagement of firms: The least productive firms produce for
the domestic market, better performers engage in export activities, and the
top firms establish foreign subsidiaries. Using German firm-level data from
1996 to 2002, we test this prediction using non-parametric methods, by
examining the distribution functions of the three subsets of firms for
stochastic dominance. Rather than just comparing first moments, this
technique allows us to compare productivity over the entire distribution.
Our results show robust support for the prediction from theory.
Researchers ; Professionals ; Students
http://hdl.handle.net/10993/7314

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