Networked FDI: Sales and Sourcing Patterns of Japanese Foreign Affiliates

Richard Baldwin and Toshihiro Okubo

No 8963, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: This paper applies a novel empirical approach to characterising the horizontal-ness and vertical-ness of affiliates based on Yeaple?s complex FDI concept. In its simplest form, horizontal-ness is measured as affiliates? local sales share while their vertical-ness is measures as their share of non-local sourcing of intermediates. Japanese affiliates in most sectors and nations are partly vertical and partly horizontal but those in North American are far more ?horizontal? than those in the EU and Asia. Affiliates became more vertical between 1996 and 2005. A four-way sales and sourcing split (host, home, regional and RoW) suggests that affiliates act as nodes in regional production networks ? especially in Asia. We posit several hypotheses that could be tested with our empirical approach.

Keywords: Vertical and horizontal fdi; Complex fdi; Networked fdi; Sourcing; Sales; Japanese foreign affiliates; Multinationals (search for similar items in EconPapers)
JEL-codes: F21 F23 (search for similar items in EconPapers)
Date: 2012-05
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (14)

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Related works:
Journal Article: Networked FDI: Sales and Sourcing Patterns of Japanese Foreign Affiliates (2014)
Working Paper: Networked FDI: Sales and sourcing patterns of Japanese foreign affiliates (2012)
Working Paper: Networked FDI: Sales and Sourcing Patterns of Japanese Foreign Affiliates (2012)
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