Analysis of productivity differences among foreign and domestic firms:evidence from Germany


This paper presents differences in firm-level total factor productivity (TFP) across 22 manufacturing and 17 service industries in Germany over the period 1995–2004. It is an attempt to study whether and to what extent foreign multinational enterprises (MNEs) are more productive relative to German firms. As well as distinguishing between foreign and domestic firms, we also distinguish between German MNEs and domestic firms that do not have any foreign presence. Controlling for endogeneity through semi-parametric techniques, our findings indicate considerable heterogeneity in firm performance across types of firms. The foreign/domestic distinction is not as clear cut as has been suggested elsewhere; multinationality is important in explaining productivity differences rather than foreignness.

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Divisions: College of Business and Social Sciences > Aston Business School > Economics, Finance & Entrepreneurship
College of Business and Social Sciences > Aston Business School > Aston India Foundation for Applied Research
College of Business and Social Sciences > Aston Business School
Additional Information: The original publication is available at
Uncontrolled Keywords: multinationals,productivity,Germany,Economics, Econometrics and Finance(all)
Publication ISSN: 1610-2886
Last Modified: 08 Jul 2024 07:04
Date Deposited: 11 Mar 2019 17:47
Full Text Link: http://www.spri ... 4456pq46g11828/
Related URLs: http://www.scop ... tnerID=8YFLogxK (Scopus URL)
PURE Output Type: Article
Published Date: 2008-04
Authors: Temouri, Yama (ORCID Profile 0000-0003-3014-258X)
Driffield, Nigel L. (ORCID Profile 0000-0003-1056-3117)
Añón Higón, Dolores



Version: Accepted Version

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