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

Kozo Kiyota, Toshiyuki Matsuura, Shujiro Urata and Yuhong Wei

World Development, 2008, vol. 36, issue 8, 1398-1414

Abstract: Summary This paper examines 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 procurement in the host country. Our major findings are twofold. First, the unobserved affiliate-specific characteristics explain the large part of the variation of the backward linkages among foreign affiliates. Second, the experience of the affiliate has positive and sometimes nonlinear effects on local procurement for the affiliates, especially in Southeast Asia and China.

Date: 2008
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Related works:
Working Paper: Reconsidering the Backward Vertical Linkages of Foreign Affiliates: Evidence from Japanese Multinationals (2007)
Working Paper: Reconsidering the Backward Vertical Linkage of Foreign Affiliates: Evidence from Japanese Multinationals (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:36:y:2008:i:8:p:1398-1414

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