German outward FDI and firm performance

Yama Temouri, Nigel Driffield, Dolores Añón Higón

Research output: Contribution to journalArticlepeer-review


This paper extends the limited literature on the link between productivity effects and outward FDI. By presenting German productivity growth effects across low and high cost locations over the period 1997 – 2006, our results show that the evidence relating outward FDI to productivity growth at home is generally positive but quite small. A 10 per cent increase in outward FDI is associated with an increase in parent TFP growth of between 0.1 to 0.9 per cent. The positive findings can be shown for parent firms operating in the manufacturing sector as well as the services sector. Our results show some evidence that home country performance is enhanced for firms which endeavour to invest abroad.
Original languageEnglish
Pages (from-to)31-50
Number of pages20
JournalApplied Economics Quarterly
Issue number1
Publication statusPublished - Jan 2010


  • outward foreign direct investment
  • Germany
  • firm performance


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