Does it pay to be active on many foreign markets? profitability in german multi-market exporters and importers from manufacturing industries

Joachim Wagner

doi:10.1142/9781786349699_0023

Does it pay to be active on many foreign markets? profitability in german multi-market exporters and importers from manufacturing industries

Joachim Wagner^*

^*Corresponding author for this work

Research output: Contributions to collected editions/works › Chapter › peer-review

Abstract

This paper provides the first empirical evidence on the link between the number of foreign markets (where a market is defined as the combination of one traded good and one country traded with) a firm is active on and its profitability. We find that in German manufacturing industries the profitability of a firm is neither positively nor negatively related to the number of foreign markets. The extra costs associated with being active on more foreign markets tend to be balanced by the extra benefits. Therefore, we have evidence that it does not pay to be active on many foreign markets.

Original language	English
Title of host publication	Microeconometric Studies Of Firms Imports And Exports : Advanced Methods Of Analysis And Evidence From German Enterprises
Editors	Joachim Wagner
Number of pages	15
Publisher	World Scientific Publishing Co.
Publication date	16.03.2021
Pages	413-427
ISBN (Print)	9781786349682
ISBN (Electronic)	9781786349705
DOIs	https://doi.org/10.1142/9781786349699_0023
Publication status	Published - 16.03.2021

Bibliographical note

Originally published in Review of Economics 70 (2019), 1–13. Reprinted with permission of Oldenbourg Wissenschaftsverlag GmbH.

Research areas and keywords

Exports
Germany
Imports
Number of foreign markets
Profitability
Economics

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10.1142/9781786349699_0023

Cite this

Wagner, J. (2021). Does it pay to be active on many foreign markets? profitability in german multi-market exporters and importers from manufacturing industries. In J. Wagner (Ed.), Microeconometric Studies Of Firms Imports And Exports: Advanced Methods Of Analysis And Evidence From German Enterprises (pp. 413-427). World Scientific Publishing Co.. https://doi.org/10.1142/9781786349699_0023

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abstract = "This paper provides the first empirical evidence on the link between the number of foreign markets (where a market is defined as the combination of one traded good and one country traded with) a firm is active on and its profitability. We find that in German manufacturing industries the profitability of a firm is neither positively nor negatively related to the number of foreign markets. The extra costs associated with being active on more foreign markets tend to be balanced by the extra benefits. Therefore, we have evidence that it does not pay to be active on many foreign markets.",

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Wagner, J 2021, Does it pay to be active on many foreign markets? profitability in german multi-market exporters and importers from manufacturing industries. in J Wagner (ed.), Microeconometric Studies Of Firms Imports And Exports: Advanced Methods Of Analysis And Evidence From German Enterprises. World Scientific Publishing Co., pp. 413-427. https://doi.org/10.1142/9781786349699_0023

Does it pay to be active on many foreign markets? profitability in german multi-market exporters and importers from manufacturing industries. / Wagner, Joachim.
Microeconometric Studies Of Firms Imports And Exports: Advanced Methods Of Analysis And Evidence From German Enterprises. ed. / Joachim Wagner. World Scientific Publishing Co., 2021. p. 413-427.

Research output: Contributions to collected editions/works › Chapter › peer-review

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Wagner J. Does it pay to be active on many foreign markets? profitability in german multi-market exporters and importers from manufacturing industries. In Wagner J, editor, Microeconometric Studies Of Firms Imports And Exports: Advanced Methods Of Analysis And Evidence From German Enterprises. World Scientific Publishing Co. 2021. p. 413-427 doi: 10.1142/9781786349699_0023

Does it pay to be active on many foreign markets? profitability in german multi-market exporters and importers from manufacturing industries

Abstract

Bibliographical note

Research areas and keywords

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Cite this