Cross-Border and Foreign Affiliate Sales of Services: Evidence from German Micro-Data
University of Milan - Centro Studi Luca d'Agliano (LdA)
University of Graz
Christian-Albrechts-Universitaet zu Kiel; CESifo (Center for Economic Studies and Ifo Institute for Economic Research); Kiel Institute for the World Economy
Paris School of Economics (PSE)
April 30, 2012
CESifo Working Paper Series No. 3806
We merge German balance-of-payments and foreign-affiliate-trade statistics to obtain data about trade in commercial services at the firm level. We use these data to study export market participation and the choice of export mode: cross-border versus foreign affiliate sales. We find that for firms in our sample productivity is both a statistically significant and economically important determinant of the export participation and export mode choice. We also identify the role of industry- and country-specific determinants.
Number of Pages in PDF File: 30
Keywords: international trade, trade in services, supply modes, commercial presence, foreign direct investment, multinational enterprises, firm heterogeneity
JEL Classification: F120, F150, L130working papers series
Date posted: May 7, 2012
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