Exports and Profitability – First Evidence for German Business Services Enterprises
JOURNAL ARTICLE
Cite JOURNAL ARTICLE
Style
Format
Exports and Profitability – First Evidence for German Business Services Enterprises
Vogel, Alexander | Wagner, Joachim
Applied Economics Quarterly, Vol. 56 (2010), Iss. 1 : pp. 7–30
24 Citations (CrossRef)
Additional Information
Article Details
Pricing
Author Details
1Alexander Vogel, Leuphana University of Lüneburg, Institute of Economics, Germany.
2Joachim Wagner, Leuphana University of Lüneburg, Institute of Economics.
Cited By
-
The impact of artificial intelligence on total factor productivity: empirical evidence from China’s manufacturing enterprises
Wang, Ke-Liang | Sun, Ting-Ting | Xu, Ru-YuEconomic Change and Restructuring, Vol. 56 (2023), Iss. 2 P.1113
https://doi.org/10.1007/s10644-022-09467-4 [Citations: 25] -
Trade and profit efficiency of manufacturing industries in South Africa
Mazorodze, Brian | Kaseeram, Irrshad | Greyling, LorraineThe Journal of International Trade & Economic Development, Vol. 30 (2021), Iss. 5 P.707
https://doi.org/10.1080/09638199.2021.1893374 [Citations: 4] -
Does Importing More Inputs Raise Productivity and Exports? Some Evidence from Indian Manufacturing
Sharma, Chandan
SSRN Electronic Journal , Vol. (2016), Iss.
https://doi.org/10.2139/ssrn.3184466 [Citations: 1] -
International trade and firm performance: a survey of empirical studies since 2006
Wagner, Joachim
Review of World Economics, Vol. 148 (2012), Iss. 2 P.235
https://doi.org/10.1007/s10290-011-0116-8 [Citations: 357] -
Export and Firm Performance: Evidence on Productivity and Profitability of Italian Companies
Grazzi, Marco
Journal of Industry, Competition and Trade, Vol. 12 (2012), Iss. 4 P.413
https://doi.org/10.1007/s10842-011-0102-9 [Citations: 34] -
Firm level assessment of Pakistan and Malaysia Free Trade Agreement
Hussain, Ch. Mazhar | Ali Shah, Syed ZulfiqarAsia Pacific Management Review, Vol. 27 (2022), Iss. 4 P.265
https://doi.org/10.1016/j.apmrv.2021.10.001 [Citations: 0] -
Service Firms Heterogeneity, International Collaborations and Export Participation
Castellacci, Fulvio
Journal of Industry, Competition and Trade, Vol. 14 (2014), Iss. 2 P.259
https://doi.org/10.1007/s10842-013-0153-1 [Citations: 11] -
The gains from technology: new products, exports and profits
Guarascio, Dario | Pianta, MarioEconomics of Innovation and New Technology, Vol. 26 (2017), Iss. 8 P.779
https://doi.org/10.1080/10438599.2016.1257446 [Citations: 26] -
Is export diversification good for profitability? First evidence for manufacturing enterprises in Germany
Wagner, Joachim
Applied Economics, Vol. 46 (2014), Iss. 33 P.4083
https://doi.org/10.1080/00036846.2014.950797 [Citations: 18] -
New Methods for the Analysis of Links between International Firm Activities and Firm Performance: A Practitioner's Guide
Wagner, Joachim
The World Economy, Vol. 38 (2015), Iss. 4 P.704
https://doi.org/10.1111/twec.12162 [Citations: 5] -
Self-selection into export markets by business services firms – Evidence from France, Germany and the United Kingdom
Temouri, Yama | Vogel, Alexander | Wagner, JoachimStructural Change and Economic Dynamics, Vol. 25 (2013), Iss. P.146
https://doi.org/10.1016/j.strueco.2012.02.004 [Citations: 48] -
THE RELATIONSHIP BETWEEN EXPORT STATUS AND PRODUCTIVITY IN SERVICES: A FIRM‐LEVEL ANALYSIS FOR SPAIN
Minondo, Asier
Bulletin of Economic Research, Vol. 66 (2014), Iss. S1
https://doi.org/10.1111/boer.12029 [Citations: 13] -
The Impact of R&D Activities on Exports of German Business Services Enterprises: First Evidence from a Continuous Treatment Approach
Fryges, Helmut | Vogel, Alexander | Wagner, JoachimThe World Economy, Vol. 38 (2015), Iss. 4 P.716
https://doi.org/10.1111/twec.12177 [Citations: 15] -
Counterfeiting and firm survival. Do international trade activities matter?
Pittiglio, Rosanna
International Business Review, Vol. 32 (2023), Iss. 5 P.102145
https://doi.org/10.1016/j.ibusrev.2023.102145 [Citations: 2] -
Exporting by Private Equity‐Backed Portfolio Companies
Wilson, Nick | Uddin, Moshfique | Wright, MikeBritish Journal of Management, Vol. 33 (2022), Iss. 1 P.266
https://doi.org/10.1111/1467-8551.12566 [Citations: 13] -
Service innovation and the proximity-concentration trade-off model of trade and FDI
Castellacci, Fulvio
Economics of Innovation and New Technology, Vol. 23 (2014), Iss. 1 P.92
https://doi.org/10.1080/10438599.2013.828890 [Citations: 2] -
Exports and Firm Characteristics in Germany: A Survey of Empirical Studies (1991 to 2011)
Wagner, Joachim
Applied Economics Quarterly, Vol. 57 (2011), Iss. 2 P.145
https://doi.org/10.3790/aeq.57.2.145 [Citations: 12] -
Firm exports and performance: Evidence from Serbia
Čupić, Milan | Vržina, StefanEkonomski horizonti, Vol. 26 (2024), Iss. 2 P.133
https://doi.org/10.5937/ekonhor2402133C [Citations: 1] -
Firm Performance and Exports: Evidence from the Romanian Wine Industry
Lessoua, Albert | Mutascu, Mihai | Turcu, CaméliaJournal of Wine Economics, Vol. 15 (2020), Iss. 2 P.207
https://doi.org/10.1017/jwe.2020.28 [Citations: 9] -
OWNERSHIP STRUCTURE, ACQUISITIONS AND EXECUTIVE COMPENSATION: EVIDENCE FROM PUBLICLY LISTED CHINESE COMPANIES
KANG, LILI | ANWAR, SAJID | PENG, FEIThe Singapore Economic Review, Vol. 68 (2023), Iss. 01 P.285
https://doi.org/10.1142/S0217590820500113 [Citations: 3] -
Exporters of Services: A Look at U.S. Exporters Outside of the Manufacturing Sector
Tito, Maria D.
Finance and Economics Discussion Series, Vol. 2019.0 (2019), Iss. 63
https://doi.org/10.17016/feds.2019.063 [Citations: 1] -
Exports and Growth: Learning from the Case of Southern U.S. Metropolitan Areas
Kalafsky, Ronald V. | Graves, WilliamThe Professional Geographer, Vol. 70 (2018), Iss. 3 P.383
https://doi.org/10.1080/00330124.2017.1403331 [Citations: 7] -
Exports, Imports and Profitability: First Evidence for Manufacturing Enterprises
Wagner, Joachim
Open Economies Review, Vol. 23 (2012), Iss. 5 P.747
https://doi.org/10.1007/s11079-011-9235-z [Citations: 29] -
From Estimation Results to Stylized Facts Twelve Recommendations for Empirical Research in International Activities of Heterogeneous Firms
Wagner, Joachim
De Economist, Vol. 159 (2011), Iss. 4 P.389
https://doi.org/10.1007/s10645-011-9167-4 [Citations: 19]
Abstract
We use the unique recently released German business services statistics panel to conduct the first comprehensive empirical study on the relationship between exports and profitability for the business services sector. We document a negative profitability differential of services exporters compared to non-exporters that is statistically significant, though rather small, when observed firm characteristics and unobserved firm specific effects are controlled for. We find that export-starters in services are less profitable than non-starters, even two years before they begin to export, pointing to self-selection of less profitable firms into export markets. We use a recently developed continuous treatment approach to investigate the causal impact of exports on profits. The estimated dose-response function shows an s-shaped relationship between profitability in 2005 and firms' export-sales ratio in 2004. Enterprises with a very small share of exports in total sales have a lower rate of profit than non-exporting firms. Then, with an increase in export intensity the rate of profit increases, too. However, even at the maximum the average profitability of the exporters is not, or only slightly, higher than the average rate of profit of the non-exporting firms. Given that Germany is one of the leading actors on the world market for services, the evidence provided here is interesting on its own. Furthermore, it can serve as a benchmark for future studies using comparable data for firms from services industries in other countries.
JEL Classifications: F14, D21, L80