EconPapers    
Economics at your fingertips  
 

The implicit return on domestic and international sales: An empirical analysis of US and Japanese firms

Kiyohiko Ito and Elizabeth L Rose
Additional contact information
Kiyohiko Ito: Shidler College of Business, University of Hawaii at Manoa, Honolulu, HI, USA
Elizabeth L Rose: Department of Marketing and Management, Aalto University School of Economics, Helsinki, Finland

Journal of International Business Studies, 2010, vol. 41, issue 6, 1074-1089

Abstract: An empirical analysis of imputed returns on international and domestic sales suggests that neither US nor Japanese manufacturing firms consistently used domestic profits to subsidize foreign operations. Apart from the early 1990s, when the yen was particularly strong, Japanese firms generally realized higher profits in foreign markets than in their domestic market, opposite to the conventional direction for cross-subsidization. US firms also tended to have higher estimated returns from foreign markets after 1985. Our results are consistent with Hymer's theory of ownership advantage, which posits that firms with successful foreign operations must have specific advantages, relative to local firms.

Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.palgrave-journals.com/jibs/journal/v41/n6/pdf/jibs2009104a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/jibs/journal/v41/n6/full/jibs2009104a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
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:pal:jintbs:v:41:y:2010:i:6:p:1074-1089

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/41267/PS2

Access Statistics for this article

Journal of International Business Studies is currently edited by John Cantwell

More articles in Journal of International Business Studies from Palgrave Macmillan, Academy of International Business
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2019-06-04
Handle: RePEc:pal:jintbs:v:41:y:2010:i:6:p:1074-1089