Exports, FDI, and Productivity: Dynamic Evidence from Japanese Firms

Abstract

Multinational enterprises, panel data, firm heterogeneity, total factor productivity, firm survival,

Expanding to outward foreign direct investment or not? A multi-dimensional analysis of entry mode transformation of Chinese private exporting firms

“…It is expected that the most productive exporting firms engage in OFDI and become multinational enterprises (MNEs) (Greenaway & Kneller, 2007). This predication has received empirical support in a number of recent studies of developed countries including Germany (Arnold & Hussinger, 2010;Wagner, 2006), Italy (Castellani & Zanfei, 2007), France (Engel & Procher, 2011), Ireland (Girma et al, 2004), UK (Girma et al, 2005), Japan (Head & Ries, 2003;Kimura & Kiyota, 2006;Tomiura, 2007) and US (Helpman et al, 2004). Thus, we hypothesise:…”

“…Productivity heterogeneity theory has received empirical support in the studies of German, Italian, French, Irish, British, Japanese, and American firms (Arnold & Hussinger, 2010;Castellani & Zanfei, 2007;Engel & Procher, 2011;Girma, Görg & Strobl, 2004;Girma, Kneller & Pisu, 2005;Head & Ries, 2003;Helpman, Melitz & Yeaple, 2004;Kimura & Kiyota, 2006;Tomiura, 2007;Wagner, 2006). However there is no study that empirically tests this theory in the context of China.…”

The Effects of Overseas Operations on Home Employment of Japanese Multinational Enterprises

“…Under 3 2 Fortunately, Japan is one of the few countries, besides the US and Sweden, where detailed information on the overseas operations of national firms has been collected systematically over a long period of time. Recently, these firm-level surveys containing direct measures of Japanese MNEs' performance have become increasingly available to researchers Ando 2003, 2005;Ando and Kimura 2005;Hijzen et al 2006;Kimura and Kiyota 2006;Shimizutani and Todo 2007;Todo and Shimizutani 2008).…”

“…Of the available studies on Japanese MNEs, a disproportionately large number of studies have focussed on the relationship between expanded overseas production and exports of home countries in Japan (Fukao and Amano 1998;Lipsey et al 1999;Head and Ries 2001;Kimura and Kiyota 2006). Fukao (1995) makes an early attempt to examine the possible impacts of foreign affiliate production on domestic employment.…”

Export vs. FDI: Sandwich Sorting with Quadratic Preferences

“…The remainder of the paper is organized as follows: After outlining some crucial elements of the 5 Empirical evidence for a productivity premium of multinational enterprises (relative to exporters) and exporters (relative to domestic firms) is found in Kimura and Kiyota (2006) and Tomiura (2007) for Japan, Girma et al (2005) for the UK, Wagner (2006) and Arnold and Hussinger (2010) for Germany and Engel and Procher (2012) for France. 6 The "proximity-concentration trade-off" is established in the advanced literature of horizontal FDI with the work by Brainard (1997) and continued by Markusen and Venables (2000), generalizing Brainard's setting by allowing for factor endowment differences between two countries and thereby allowing for country asymmetries.…”