Exprots, FDI, and Productivity: Evidence from Japanese Manufacturing Firms

Hyeog Ug Kwon

Hi-Stat Discussion Paper Series from Institute of Economic Research, Hitotsubashi University

Abstract: This paper employs nonparametric tests and Japanese firm level data to examine the hypothesis put forward by Helpman, Melitz and Yeaple (2003) and Head and Ries (2003) that firms engaging in FDI are more productive than other firms. We find that the productivity distribution of foreign firms operating in Japan dominates that of Japanese multinationals, which dominates that of exporters, which in turn dominates that of non-exporters, thus confirming the theoretical predictions.

Keywords: Export; FDI; TFP; nonparametric Kolmogorov-Smirnov test (search for similar items in EconPapers)
JEL-codes: D21 F14 F23 (search for similar items in EconPapers)
Date: 2007-06
New Economics Papers: this item is included in nep-eff and nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:hst:hstdps:d07-214

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