FDI, ownership structure, and productivity

Tadashi Ito and Ayumu Tanaka

Japan and the World Economy, 2022, vol. 64, issue C

Abstract: The standard firm heterogeneity model of FDI considers the case of whole ownership of foreign affiliates. However, there exist many partially-owned foreign affiliates. This paper builds a model based on Helpman et al. (2004) to allow various ownership structures and posits some testable hypotheses on the relationship between productivity and ownership shares/structures. The empirical part corroborates these hypotheses, showing that high productivity firms tend to have a higher ownership share in their affiliates, and lower productivity firms tend to opt for joint-ventures with wholesalers and/or local/3rd country partners.

Keywords: FDI; Productivity; Ownership share (search for similar items in EconPapers)
JEL-codes: F20 F23 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0922142522000433
Full text for ScienceDirect subscribers only

Related works:
Working Paper: FDI, Ownership Structure, and Productivity (2020)
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: https://EconPapers.repec.org/RePEc:eee:japwor:v:64:y:2022:i:c:s0922142522000433

DOI: 10.1016/j.japwor.2022.101158

Access Statistics for this article

Japan and the World Economy is currently edited by Robert Dekle and Yasushi Hamao

More articles in Japan and the World Economy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().