Global production sharing and the FDI–trade nexus: New evidence from the Japanese automobile industry

Shuhei Nishitateno

Journal of the Japanese and International Economies, 2013, vol. 27, issue C, 64-80

Abstract: The growing importance of global production sharing makes the nexus between outward foreign direct investment (FDI) and trade in intermediate goods ever more important. This study employs newly-constructed product-level data covering 32 products and 49 host countries over the period 1993–2008 and finds evidence that FDI by upstream firms leads to additional exports of intermediate goods from the home country. The finding of a complementary relationship between FDI and intermediate exports from Japan runs counter to the popular view that the growing overseas activity of multinational enterprises could replace intermediate exports from a home country, thereby depriving the home country of job opportunities.

Keywords: Global production sharing; Foreign direct investment; Exports; Automobile; Japan (search for similar items in EconPapers)
JEL-codes: F14 F23 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (25)

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Related works:
Working Paper: Global Production Sharing and FDI-Trade Nexus: New Evidence from the Japanese Automobile Industry (2012)
Working Paper: Global Production Sharing and the FDI Trade Nexus: New Evidence from the Japanese Automobile Industry (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jjieco:v:27:y:2013:i:c:p:64-80

DOI: 10.1016/j.jjie.2013.01.001

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