Foreign-owned versus domestically-owned firms

Economic performance in Japan

Research output: Contribution to journalArticle

38 Citations (Scopus)

Abstract

This paper utilizes micro-panel data for firms located in Japan and examines differences in corporate performance between foreign-owned and domestically-owned firms in the 1990s. We find that foreign-owned firms not only reflect superior static characteristics, but also achieve faster growth. Moreover, foreign investors appear to invest in firms that may not be immediately profitable, but those that are potentially the most profitable in the future. There is also no evidence that foreign investor is "foot-loose." These imply that foreign investors bring useful firm-specific assets into the Japanese market, which may work as an effective catalyst for necessary structural reform.

Original languageEnglish
Pages (from-to)31-48
Number of pages18
JournalReview of Development Economics
Volume11
Issue number1
DOIs
Publication statusPublished - 2007 Feb

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Japan
firm
investor
economics
performance
structural reform
panel data
assets
catalyst
market
evidence

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Development

Cite this

Foreign-owned versus domestically-owned firms : Economic performance in Japan. / Kimura, Fukunari; Kiyota, Kozo.

In: Review of Development Economics, Vol. 11, No. 1, 02.2007, p. 31-48.

Research output: Contribution to journalArticle

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