| Abstract: | It is well known that the performance of foreign firms comparedto domestic companies is superior with respect to employment,wages, and productivity. In this paper we detail the exportbehaviour of foreign affiliates in the United Kingdom relativeto indigenous firms. Our findings show that foreign firms aremore likely to export, and when they do so they are more exportintensive and overall contribute disproportionately to totalmanufacturing exports from the UK. While firm-level advantagesexplain some of these differences in export behaviour, strategicconsiderations dominate, where these include the differentialin costs, productivity, and market size between the UK and foreigncountries. That is, both horizontal and vertical motives canbe found for the use of the UK as an export platform by foreignfirms. |
