Cross-Border and Foreign Affiliate Sales of Services: Evidence from German Micro-Data
30 Pages Posted: 7 May 2012
Date Written: April 30, 2012
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.
Keywords: international trade, trade in services, supply modes, commercial presence, foreign direct investment, multinational enterprises, firm heterogeneity
JEL Classification: F120, F150, L130
Suggested Citation: Suggested Citation