The German model of capitalism and the persistence of outward foreign direct investment: evidence from German manufacturing industries

T. Bohl Martin, Frank McDonald, Heinz-Josef Tьselmann, Svitlana Voronkova, Paul Windrum
2011 Èkonomika Regiona  
ЭКОНОМИКА РЕГИОНА № 2/2011 зарубежный опыт формирования институтов модернизации Against the backdrop of critique on the German model of capitalism as to the ability to successfully adjust to rapid change and exogenous shocks in wake of economic globalisation, this paper investigates the degree of shock persistence in foreign direct investment (FDI) of ten German manufacturing industries for the period 1976 to 2003. Persistence in foreign direct investment time series data is established by
more » ... ing various unit root tests. The results are robust to the potential presence of structural breaks in the data. The empirical analysis shows that German outward FDI in mature manufacturing industries, with one exception, exhibits a high degree of shock persistence. The results suggest, at least for mature German industries, the German model worked well in the past in times of crises and shocks.
doi:10.17059/2011-2-12 fatcat:zxvj6mr6yzg65asrsasltfk4ne