Firm Productivity and Foreign Direct Investment in the Services Sector: A Firm-Level Analysis using Japanese Data

Ayumu Tanaka

Discussion papers from Graduate School of Economics Project Center, Kyoto University

Abstract: Using Japanese firm-level data, I examine whether multinational enterprises (MNEs) are more productive than non-MNEs in the services sector. I employ the Kolmogorov-Smirnov (KS) test to compare the overall distribution of productivity by multinational status. The results indicate that MNEs tend to be more productive than non-MNEs in the services sector and suggest that the standard firm heterogeneity model can well explain foreign direct investment (FDI) by firms in the services sector.

Keywords: Services sector; Firm heterogeneity; Multinationals; Foreign direct investment (search for similar items in EconPapers)
JEL-codes: F1 F23 L8 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2012-02
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Persistent link: https://EconPapers.repec.org/RePEc:kue:dpaper:e-11-008

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