Foreign Direct Investment in China and Domestic Activities of Japanese Firms

Author Name OKUBO Toshihiro (Keio University)
Creation Date/NO. March 2021 21-E-023
Research Project East Asian Industrial Productivity
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China has seen dramatic economic growth in the last decades and attracted foreign capital and human resources. This paper studies firm characteristics of the Japanese firms investing in China. We combine several sources of micro-data and construct panel data on Japanese manufacturing firms from 1995 to 2009. As a result we find that the number of firms investing in China steadily increased over time and FDI in China increased domestic sales, productivity, wages and number of employees of Japanese firms, rather than increasing technological development.