A Two-dimensional Analysis of the Impact of Outward FDI on Performance at Home: Evidence from Japanese manufacturing firms

         
Author Name OBASHI Ayako (Keio University) / HAYAKAWA Kazuo (Inter-disciplinary Studies Center, Institute of Developing Economies) / MATSUURA Toshiyuki (Keio University) / MOTOHASHI Kazuyuki (Faculty Fellow, RIETI)
Creation Date/NO. October 2009 09-E-053
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Abstract

This paper empirically investigates two areas of changes in firm behavior and performance at home before and after investing abroad. The first is the type of foreign direct investment (FDI): horizontal FDI or vertical FDI. The second is the firm's domestic activities of interest: production activity and non-production activity. From a theoretical standpoint, the impact of outward FDIs differs not only by type, but according to the firm’s activities. By exploiting two types of firm-level data that enable us to distinguish between production and non-production activities, our work provides a detailed picture of the intra-firm changes in behavior and performance that occur as a result of globalizing production.

Published: Kazunobu Hayakawa, Toshiyuki Matsuura, Kazuyuki Motohashc, Ayako Obashi, 2013. "Two-dimensional analysis of the impact of outward FDI on performance at home: Evidence from Japanese manufacturing firms," Japan and the World Economy, Vol. 27, pp. 25-33.
http://www.sciencedirect.com/science/article/pii/S0922142513000145