Networked FDI: Sales and Sourcing Patterns of Japanese Foreign Affiliates

Richard Baldwin and Toshihiro Okubo ()

No 18083, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Using firm-level data on the sales and sourcing patterns of Japanese affiliates, this paper suggests that very little FDI falls neatly into the standard bins of horizontal, vertical, or export-platform FDI. Most affiliates import some intermediates and export some output, suggesting a pattern that might be called ‘networked FDI’. This suggests that the nature of FDI is influenced by ‘regional comparative advantage’ i.e. proximity of markets and suppliers. An empirical strategy is suggested for testing and classifying the nature of FDI that is based on firms’ sales and sourcing patterns rather than on standard macro-level variables (market size and income differences).

JEL-codes: F21 F23 (search for similar items in EconPapers)
Date: 2012-05
Note: ITI
References: Add references at CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.nber.org/papers/w18083.pdf (application/pdf)
Access to the full text is generally limited to series subscribers, however if the top level domain of the client browser is in a developing country or transition economy free access is provided. More information about subscriptions and free access is available at http://www.nber.org/wwphelp.html. Free access is also available to older working papers.

Related works:
Working Paper: Networked FDI: Sales and Sourcing Patterns of Japanese Foreign Affiliates (2012)
Working Paper: Networked FDI: Sales and sourcing patterns of Japanese foreign affiliates (2012)
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: http://EconPapers.repec.org/RePEc:nbr:nberwo:18083

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w18083
The price is Paper copy available by mail.

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc
Address: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Contact information at EDIRC.
Series data maintained by ().