TY - JOUR
T1 - Exports, FDI, and productivity
T2 - Dynamic evidence from Japanese firms
AU - Kimura, Fukunari
AU - Kiyota, Kozo
N1 - Funding Information:
Remark: The METI database employed in this analysis was prepared and analyzed in co-operation with the Japan Center for Economic Research and the Research and Statistics Department, Ministry of Economy, Trade, and Industry (METI). The authors would like to thank Kyoji Fukao, Keiko Ito, Masahito Kobayashi, Yoshiaki Omori, Shujiro Urata, Ryuhei Wakasugi, seminar and conference participants at the Japan Society of International Economics, METI, Research Institute of Economy, Trade and Industry (RIETI) and Yokohama National University, an anonymous referee, and managing editor Harmen Lehment for their helpful comments. Kozo Kiyota gratefully acknowledges the financial support of a grant-in-aid (B-2: 14330012) from Ministry of Education, Culture, Sports, Science and Technology. The views expressed herein are those of the authors. Please address correspondence to Fukunari Kimura, Faculty of Economics, Keio University, 2-15-45, Mita, Minato-ku, Tokyo 108-8345, Japan; e-mail: fkimura@econ.keio.ac.jp
PY - 2006/12
Y1 - 2006/12
N2 - This paper examines the relationship between exports, foreign direct investment, and firm productivity. Using longitudinal panel data on Japanese firms, it is found that the most productive firms engage in exports and foreign direct investment, medium productive firms engage in either exports or foreign direct investment, and the least productive firms focus only on the domestic market. Moreover, exports and foreign direct investment appear to improve firm productivity once the productivity convergence effect is controlled for. Firms that retain a presence in foreign markets, either by exports or foreign direct investment, show the highest productivity growth, which contributes to improvements in national productivity.
AB - This paper examines the relationship between exports, foreign direct investment, and firm productivity. Using longitudinal panel data on Japanese firms, it is found that the most productive firms engage in exports and foreign direct investment, medium productive firms engage in either exports or foreign direct investment, and the least productive firms focus only on the domestic market. Moreover, exports and foreign direct investment appear to improve firm productivity once the productivity convergence effect is controlled for. Firms that retain a presence in foreign markets, either by exports or foreign direct investment, show the highest productivity growth, which contributes to improvements in national productivity.
KW - Firm heterogeneity
KW - Firm survival
KW - Multinational enterprises
KW - Panel data
KW - Total factor productivity
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U2 - 10.1007/s10290-006-0089-1
DO - 10.1007/s10290-006-0089-1
M3 - Article
AN - SCOPUS:33845940742
VL - 142
SP - 695
EP - 719
JO - Review of World Economics
JF - Review of World Economics
SN - 1610-2878
IS - 4
ER -
