TY - JOUR
T1 - Impact of Extensive and Intensive Margins of Foreign Direct Investment on Domestic Corporate Performance
T2 - Evidence from Japanese Automobile Parts Suppliers
AU - Matsuura, Toshiyuki
N1 - Publisher Copyright:
© 2017 by the Earth Institute at Columbia University and the Massachusetts Institute of Technology.
PY - 2017/6/1
Y1 - 2017/6/1
N2 - This study uses firm-level data on Japanese automobile parts suppliers to investigate the impact of foreign direct investment (FDI) on domestic corporate performance. We use the automobile makers' FDI as an instrumental variable for suppliers' FDI and estimate the impact of both the extensive and intensive margins of FDI. We find that whereas the intensive margin of FDI does not significantly impact corporate performance, the extensive margin positively influences sales and total factor productivity. Furthermore, the impact of the initial FDI entry brings stronger effects than that of subsequent FDI flows.
AB - This study uses firm-level data on Japanese automobile parts suppliers to investigate the impact of foreign direct investment (FDI) on domestic corporate performance. We use the automobile makers' FDI as an instrumental variable for suppliers' FDI and estimate the impact of both the extensive and intensive margins of FDI. We find that whereas the intensive margin of FDI does not significantly impact corporate performance, the extensive margin positively influences sales and total factor productivity. Furthermore, the impact of the initial FDI entry brings stronger effects than that of subsequent FDI flows.
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U2 - 10.1162/ASEP_a_00535
DO - 10.1162/ASEP_a_00535
M3 - Review article
AN - SCOPUS:85020132426
SN - 1535-3516
VL - 16
SP - 187
EP - 209
JO - Asian Economic Papers
JF - Asian Economic Papers
IS - 2
ER -
