Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/76713 
Year of Publication: 
2013
Series/Report no.: 
Kiel Working Paper No. 1845
Publisher: 
Kiel Institute for the World Economy (IfW), Kiel
Abstract: 
We examine how foreign ownership of a firm affects the variety of goods that the firm exports and the number of countries it trades with. We construct a simple theoretical model of how foreign ownership may affect these extensive margins of exports and take this model to data from Germany, one of the leading actors on the world market for goods. In line with theoretical predictions we find that foreign-owned firms do export more goods to more countries after controlling for firm size, productivity and industry affiliation. These differences between foreign-owned firms and domestically controlled firms are highly statistically significant, and they are large from an economic point of view, with foreign-owned firms exporting up to 39% more goods to up to 31% more countries.
Subjects: 
international trade
foreign ownership
multinational enterprise
foreign direct investment
extensive margins of exports
Germany
JEL: 
F14
F23
Document Type: 
Working Paper

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