Revisiting Complementarity between Japanese FDI and the Import of Intermediate Goods:Agglomeration Effects and Parent-firm Heterogeneity

Tadashi Ito, Toshiyuki Matsuura and Chih-Hai Yang
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Tadashi Ito: Faculty of International Social Science, Gakushuin University
Chih-Hai Yang: National Central University

No 2016-025, Keio-IES Discussion Paper Series from Institute for Economics Studies, Keio University

Abstract: The concern regarding the hollowing out by FDI has re-emerged in Japan, with both large and small firms relocating their plants to China since the late 1990s. This study sheds lights on the effects of agglomeration and firm characteristics upon the complementary relationship between FDI and import of intermediate input from home country, which has been overlooked in the literature. Estimating the duration model of Japanese affiliates' input trade by using parent?affiliate, productlevel data from 2000 to 2006, we found while firms in agglomerated regions with more foreign affiliates shorten its duration, small firms import for a longer duration.

Keywords: FDI by SMEs; Trade duration; Intermediate goods; Agglomeration (search for similar items in EconPapers)
JEL-codes: F14 F21 F23 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2016-11-16
New Economics Papers: this item is included in nep-bec, nep-geo and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Journal Article: Revisiting Complementarity between Japanese FDI and the Import of Intermediate Goods: Agglomeration Effects and Parent-firm Heterogeneity* (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:keo:dpaper:2016-025

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