EconPapers    
Economics at your fingertips  
 

Complex Vertical FDI and Firm Heterogeneity: Evidence from East Asia

Kazunobu Hayakawa () and Toshiyuki Matsuura ()

No 2010-008, Keio/Kyoto Joint Global COE Discussion Paper Series from Keio/Kyoto Joint Global COE Program

Abstract: In this study, we statistically test the validity of the mechanics of complex vertical foreign direct investment (VFDI) in Japanese machinery FDI to East Asia by estimating a multiple-spatial lag model. From the theoretical viewpoint, in complex VFDI, the production activity of affiliates in a given country is positively related to that in neighboring countries that have large differences in factor prices with the given country. Our empirical results show that such mechanics of complex VFDI work in Japanese FDI to East Asia, and that they work more strongly in those MNEs with higher productivity. These results have important implications on the policies of developing countries in attracting FDI.

New Economics Papers: this item is included in nep-ifn, nep-int and nep-sea
Date: 2010
References: View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
http://ies.keio.ac.jp/old_project/old/gcoe-econbus/pdf/dp/DP2010-008.pdf (application/pdf)

Related works:
Journal Article: Complex vertical FDI and firm heterogeneity: Evidence from East Asia (2011) Downloads
Working Paper: Complex Vertical FDI and Firm Heterogeneity: Evidence from East Asia (2009) Downloads
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:kei:dpaper:2010-008

Access Statistics for this paper

More papers in Keio/Kyoto Joint Global COE Discussion Paper Series from Keio/Kyoto Joint Global COE Program Contact information at EDIRC.
Bibliographic data for series maintained by Global COE Program Office (). This e-mail address is bad, please contact .

 
Page updated 2019-12-25
Handle: RePEc:kei:dpaper:2010-008