Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/37513 
Year of Publication: 
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 No. A5-V2
Publisher: 
Verein für Socialpolitik, Frankfurt a. M.
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

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