Multinationals, Intrafirm Trade, and Employment Volatility

Kozo Kiyota, Toshiyuki Matsuura and Yoshio Higuchi ()
Additional contact information
Yoshio Higuchi: Keio University

No 201911, Working Papers from University of Hawaii at Manoa, Department of Economics

Abstract: This paper examines the theoretically ambiguous relationship between the volatility of employment growth and the foreign exposure of firms. We employ unique Japanese firm-level data over the period 1994--2012. This allows us to investigate any differences in this relationship across multinational firms and trading and nontrading firms, manufacturing and wholesale trade, and intrafirm and interfirm trade. One major finding is that in manufacturing, employment volatility increases as the share of intrafirm exports to total sales increases. In contrast, in wholesale trade, employment volatility declines as the share of intrafirm imports to total imports increases. One possible interpretation of these results is that the transmission of foreign supply and demand shocks could be through not only manufacturing, but also wholesale trade firms. Further, a higher share of intrafirm trade could magnify foreign demand shocks in manufacturing, and could mitigate foreign supply shocks in wholesale trade.

Keywords: Employment volatility; Multinational firm; Intrafirm trade; Wholesale trade (search for similar items in EconPapers)
JEL-codes: F1 F16 L25 L81 (search for similar items in EconPapers)
Date: 2019-08
New Economics Papers: this item is included in nep-int and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.economics.hawaii.edu/research/workingpapers/WP_19-11.pdf First version, 2019 (application/pdf)

Related works:
Journal Article: Multinationals, intra‐firm trade and employment volatility (2020)
Working Paper: Multinationals, Intrafirm Trade, and Employment Volatility (2019)
Working Paper: Multinationals, Intrafirm Trade, and Employment Volatility (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hai:wpaper:201911

Ordering information: This working paper can be ordered from
http://www.economics ... esearch/working.html

Access Statistics for this paper

More papers in Working Papers from University of Hawaii at Manoa, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Web Technician ().