A ”new“ Micro Database for German FDI

Lipponer, Alexander

doi:10.1007/978-3-540-24736-4_9

Cited by 33 publications

(26 citation statements)

References 3 publications

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“…Second, information on outward FDI comes from the MIDI database (MIcro database Direct Investment, formerly DIREK), collected by Deutsche Bundesbank (BuBa); see Lipponer (2003) for a documentation. The MIDI data on outward FDI cover the foreign affiliates of German MNEs above ownership shares of 10 percent.…”

Section: Datamentioning

confidence: 99%

The Effect of FDI on Job Security

Becker¹,

Muendler

2008

The B.E. Journal of Economic Analysis &Amp; Policy

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Novel linked employer-employee data for multinational enterprises and their global workforces show that multinational enterprises that expand abroad retain more domestic jobs than competitors without foreign expansions. Propensity-score estimation demonstrates that the foreign expansion itself is a dominant explanatory factor for reduced worker separation rates. Bounding, concomitant variable tests, and further robustness checks show competing hypotheses to be less plausible. The finding is consistent with the hypothesis that, given global wage differences, a prevention of enterprises from outward FDI would lead to more domestic job losses. FDI raises domestic-worker retention more pronouncedly among highly educated workers.

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Section: Datamentioning

confidence: 99%

The Effect of FDI on Job Security

Becker¹,

Muendler

2008

The B.E. Journal of Economic Analysis &Amp; Policy

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“…(For details, see Lipponer (2002aLipponer ( , 2002b We use the data in a sectorally aggregated form in order to capture as much time series variation in the data as possible.…”

Section: Foreign Activities Of German Firmsmentioning

confidence: 99%

Business Cycles and FDI: Evidence from German Sectoral Data

Buch

Lipponer

2005

Rev. World Econ.

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may Abstract:Globalization has affected business cycle developments in OECD countries and has increased activities of firms across national borders. This paper analyzes whether these two developments are linked. We use a new firm-level dataset on the foreign activities of German firms to test whether foreign activities are affected by business cycle developments. We aggregate the data by the sector of the reporting firm, the sector of the foreign affiliate, and the host country. Data are annual and cover the period 1989-2002. We find that German outward FDI increases in response to positive cyclical developments abroad and in response to a depreciation of the domestic currency. Keywords:business cycles, multinational activity, FDI, panel regressions JEL-Classification: E3, F23 Non-Technical SummarySo far, theoretical and empirical literature on multinational firms has focused on the reasons for becoming a multinational, on the reasons for going into a particular country, and on the host and home country effects of multinational activity. In this paper, we add another dimension to the discussion by analyzing the influence of short-term business cycle movements on multinational activity.The starting point of our analysis is the idea that firms' activities might be linked to the business cycle either because of a financial accelerator mechanism or because of the presence of fixed costs of market entry. Since financial frictions and fixed costs of entry can be expected to vary across firms from different sectors, we construct a dataset which contains information on foreign activities of German firms at a sectoral level. Our data are annual and cover a time period of 14 years (1989)(1990)(1991)(1992)(1993)(1994)(1995)(1996)(1997)(1998)(1999)(2000)(2001)(2002).Our study has four main findings:First, foreign activities of German firms increase in response to positive cyclical developments abroad. This effect was particularly strong in the first and second half of the 1990s. Adjustment to the cycle mainly takes place through changes in volumes rather than entry.Second, a depreciation of the euro has stimulated foreign activities as well. This effect was particularly strong in the first half of the 1990s. In the second half of the 1990s, the real exchange rate effect was weaker, possibly because of the impact of the large valuation changes on global stock markets.Third, business cycle and real exchange rate effects are especial...

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“…Transaction data include information only on the 7 The consolidated amount of primary and secondary FDI is calculated by adding secondary FDI held by dependent holding companies to the amount of primary FDI and then deducting primary FDI in these holding companies in order to prevent double counting. 8 For further details see Lipponer (2002) and Lipponer (2003). 9 The reporting exemption limit currently is €12,500.…”

Section: Construction Of the Datasetmentioning

confidence: 99%

FDI Versus Cross-Border Financial Services: The Globalisation of German Banks

Buch

Lipponer

2004

SSRN Journal

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Abstract:The choice between foreign direct investment (FDI) and exports has been a recurrent theme in the literature on international trade, yet few studies have analysed this choice at the level of the individual firm. This paper uses a new dataset to study the FDIversus-exports decision for banks. We use data on the foreign direct investment stocks and the cross-border provision of financial services of German banks for the period 1997-2000 to describe the regional pattern of banks' international activities. We find that country-and bank-specific variables capturing size have a major impact on banks' foreign activities. The results are consistent with the hypothesis that the realisation of economies of scale and the provision of trade-related finance shape globalisation patterns. Greater cultural and geographical distance, by contrast, potentially limit the international expansion of banks. Our results also suggest that FDI and cross-border services are complements rather than substitutes. Keywords:international banking, gravity equations, foreign direct investment, cross-border financial services JEL-Classification: F0, F21 Non Technical SummaryThis paper provides a first comprehensive assessment of the globalisation of the German banking industry based on bank-level data. By combining data from different sources, we draw a fairly complete picture of the foreign direct investments and the cross-border provision of financial services of German banks. The data we use covers the second half of the 1990s, ie a period in which the globalisation of the German banking industry was fully under way. In addition, we disentangle the effects of bank-and country-level explanatory variables, of regulatory and cultural factors, and of factors capturing market size on the internationalisation of German banks. Moreover, having access to data on all German banks, we can separate factors that influence the decision of banks to go abroad from those affecting the actual volume of international business. With regard to the latter, we find that the determinants of entry and of the volume of activity are qualitatively the same.In terms of robustness, we obtain the most stable results for variables that account for size at the bank level and at the country level. More internationally oriented and larger banks also have the largest foreign investments abroad. Larger markets (in terms of GDP) and a large volume of bilateral trade between Germany and a host country promote FDI. Hence, the intention to realise economies of scale is an important motive behind the international expansion of German banks. Moreover, the impact of the variables capturing bank and market size is the same across the different forms of foreign activities that we consider, ie FDI and cross-border financial services. In particular, the impact of trade is positive throughout. The provision of trade-related financial services thus remains a major driving force behind the globalisation of German banks. Besides, more profitable banks are more active internationally, w...

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A ”new“ Micro Database for German FDI

Cited by 33 publications

References 3 publications

The Effect of FDI on Job Security

The Effect of FDI on Job Security

Business Cycles and FDI: Evidence from German Sectoral Data

FDI Versus Cross-Border Financial Services: The Globalisation of German Banks

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