DP9016 Cross-Border and Foreign-Affiliate Sales of Services: Evidence From German Micro-Data

Author(s): Markus Kelle, Jörn Kleinert, Horst Raff, Farid Toubal
Publication Date: June 2012
Keyword(s): commercial presence, firm heterogeneity, foreign direct investment, international trade, multinational enterprises, supply modes, trade in services
JEL(s): F12, F15, L13
Programme Areas: International Trade and Regional Economics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=9016

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.