Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/57129
Year of Publication: 
2011
Series/Report no.: 
Working Paper Series in Economics No. 213
Publisher: 
Leuphana Universität Lüneburg, Institut für Volkswirtschaftslehre, Lüneburg
Abstract: 
This study provides first comprehensive analyses of foreign-controlled enterprises in the German service sector based on new micro data from official statistics. Various performance measures were examined by comparing unconditional and conditional means and quantile regression techniques were applied. Results reveal persistently superior performance for foreign-controlled affiliates when compared to German-owned affiliates. In contrast, the relationship for profitability is exactly the opposite. Labor productivity becomes insignificant when the comparison group consists of domestically-owned affiliates with a high degree of internationalization. A breakdown by country of origin shows that European affiliates pay lower wages and export less compared to other foreign affiliates and that there is no productivity advantage in favor of US firms like in manufacturing.
Subjects: 
foreign ownership
firm performance
inward FDI
service sector
multinational enterprise
JEL: 
F15
F21
F23
Document Type: 
Working Paper

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