EconPapers    
Economics at your fingertips  
 

Complex vertical FDI and firm heterogeneity: Evidence from East Asia

Kazunobu Hayakawa () and Toshiyuki Matsuura ()

Journal of the Japanese and International Economies, 2011, vol. 25, issue 3, 273-289

Abstract: This study statistically tests the validity of the mechanics of complex vertical foreign direct investment (C-VFDI) in Japanese machinery FDI to East Asia by estimating a multiple-spatial lag model. From a theoretical perspective regarding C-VFDI, the production activity of affiliates in a given country is positively related to the production activity in neighboring countries that have large differences in factor prices with the given country. Furthermore, high-productivity firms are likely to choose a C-VFDI strategy. Our empirical results show no robust geographical relationship among affiliates' activities. However, the significantly positive relationship in wage differentials among those activities is found only for high-productivity firms.

Keywords: Third-country; effects; Complex; VFDI; Spatial; lag; model (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0889158311000347
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Complex Vertical FDI and Firm Heterogeneity: Evidence from East Asia (2010) Downloads
Working Paper: Complex Vertical FDI and Firm Heterogeneity: Evidence from East Asia (2009) Downloads
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:jjieco:v:25:y:2011:i:3:p:273-289

Access Statistics for this article

Journal of the Japanese and International Economies is currently edited by Takeo Hoshi

More articles in Journal of the Japanese and International Economies from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-12-25
Handle: RePEc:eee:jjieco:v:25:y:2011:i:3:p:273-289