Reconsidering the Backward Vertical Linkage of Foreign Affiliates: Evidence from Japanese Multinationals

Kozo Kiyota, Toshiyuki Matsuura (), Shujiro Urata and Yuhong Wei

Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: This paper examined the determinants of the backward vertical linkages of Japanese foreign affiliates in manufacturing for the period 1994-2000, focusing on the local backward linkages, or local procurements. We found that the experience of the affiliate, which is measured by the length of operation, has positive impacts on local procurements in the affiliates in East and Southeast Asian countries but not so for the affiliates in developed countries. This result is robust even after we control for various factors, including government regulation on the local procurements, agglomeration effects, and unobservable firm heterogeneity.

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Date: 2005-03
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Related works:
Working Paper: Reconsidering the Backward Vertical Linkages of Foreign Affiliates: Evidence from Japanese Multinationals (2007)
Journal Article: Reconsidering the Backward Vertical Linkages of Foreign Affiliates: Evidence from Japanese Multinationals (2008)
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Persistent link: http://EconPapers.repec.org/RePEc:eti:dpaper:05019

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