FDI and Duration of Intermediate Goods Imports: Empirical Evidence from Japanese affiliates in China

Chih-Hai Yang (), Tadashi Ito () and Toshiyuki Matsuura
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Chih-Hai Yang: National Central University
Tadashi Ito: Gakushuin University

No 8710587, Proceedings of International Academic Conferences from International Institute of Social and Economic Sciences

Abstract: This paper examines the duration of intermediate goods imports and its determinants for Japanese affiliates in China. In addition to product characteristics, we consider also the influences of affiliate and parent firm characteristics, as well as regional agglomeration. Based on a unique parent?affiliate?transaction matched panel dataset over the 2000?2006 period, we adopt a discrete-time hazard model to conduct empirical estimations. Results show that products with a higher upstreamness index, differentiated goods, and process-trade goods are less likely to be substituted for local procurement. Firms located in agglomerated regions with more foreign affiliates tend to shorten the duration of imports from their home country. In terms of parent-firm characteristics, multinational enterprises that have many foreign affiliates or greater foreign production experience continue to import intermediate goods for a longer duration.

Keywords: Trade duration; FDI; Intermediate goods; Agglomeration (search for similar items in EconPapers)
Pages: 1 page
Date: 2019-07
New Economics Papers: this item is included in nep-bec, nep-cse, nep-int and nep-tra
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Published in Proceedings of the Proceedings of the 48th International Academic Conference, Copenhagen, Jul 2019, pages 172-172

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Persistent link: https://EconPapers.repec.org/RePEc:sek:iacpro:8710587

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