The Role of Multinational Firms in International Trade: The Case of Japan

Kozo Kiyota and Shujiro Urata

No 560, Working Papers from Research Seminar in International Economics, University of Michigan

Abstract: This paper examines the role of multinational firms in international trade using firm-level panel data for Japanese firms between 1994 and 2000. Our results indicate that multinational firms dominate Japanese trade. In 2000, only 12.4 percent of Japanese firms were multinationals but they accounted for 93.6 and 81.2 percent of Japanese exports and imports, respectively. We found that multinational firms emerged from being exporters/importers. These results imply that firms do not make the choice of either exporting or undertaking FDI, contrary to the findings of previous studies. Rather, exporters make a decision on whether or not to undertake FDI.

Keywords: Multinational Firms; Foreign Direct Investment; International Trade; Intra-firm Trade (search for similar items in EconPapers)
JEL-codes: D21 F10 F20 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2007
New Economics Papers: this item is included in nep-cse and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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http://fordschool.umich.edu/rsie/workingpapers/Papers551-575/r560.pdf

Related works:
Journal Article: The role of multinational firms in international trade: The case of Japan (2008)
Working Paper: The Role of Multinational Firms in International Trade: The Case of Japan (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:mie:wpaper:560

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