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Title:Foreign Market Entry and Exit: Performance Dynamics of French Firms PDF Logo
Authors:Procher, Vivien
Engel, Dirk
Issue Date:2010
Series/Report no.:Beiträge zur Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie - Session: Trade and Foreign Dynamic Investment: Dynamics of Entry and Exit A5-V2
Abstract:'Being international' has nearly become an undisputed aim for firms in a globalized world. Often, however, we do not know much about the actual performance consequences of firms' foreign market entries as well as exits. We apply a propensity score matching technique in combination with a difference-in-difference estimator to analyse the performance dynamics of French firms that have entered and left international markets during the period 2000-2007. Market entry has on average a positive home market effect in terms of productivity and turnover, whereas employment is hardly affected. Former exporters becoming engaged in FDI experience a strong export growth, indicating that FDI is rather complementing than substituting export activities. Overall, market exit has only limited effects on domestic performance, but industry differences reveal that low-tech firms are confronted with a remarkable decrease in labour productivity.
Subjects:Foreign markets
Entry and exit
Firm performance
JEL:F21
F23
D21
Document Type:Conference Paper
Appears in Collections:Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie

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