The impact of locating production abroad on activities at home

Joern Kleinert () and Farid Toubal

No 314, Tübinger Diskussionsbeiträge from University of Tübingen, School of Business and Economics

Abstract: We analyze whether firms that establish their first affiliate in a foreign country have a different pattern of growth in output, employment, capital and productivity than firms that remain national. We use firm-level data on German multinational activities and appropriate matching techniques to compare the performance of German multinational firms with their national counterparts. We do not find a negative effect of firm's decision to establish a foreign affiliate on growth in its employment at home. There is also no significant effect of the internationalization decision of German firms on other measures of activities at home.

Keywords: multinational firms; employment; matching (search for similar items in EconPapers)
JEL-codes: C21 F12 F23 (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (40)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:tuedps:314

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