Internal capital market and the growth and survival of Japanese plants in the United States

Research output: Contribution to journalArticle

7 Citations (Scopus)


This article examines the growth and survival of foreign plants based on a cross-section of Japanese plants in the United States. Results show that plant turnovers are significantly related to plant age and size in a manner highly consistent with the Bayesian learning model of firm dynamics (e.g. Jovanovic [Econometrica 50 (1982) 649]). They also indicate that financial conditions prevailing at the Japanese parent affect plant dynamics importantly, suggesting the working of internal capital markets across the Pacific. Results, however, are ambiguous with regard to the efficiency of internal capital allocation.

Original languageEnglish
Pages (from-to)366-385
Number of pages20
JournalJournal of The Japanese and International Economies
Issue number3
Publication statusPublished - 2005 Sep 1



  • Firm turnover
  • Foreign direct investment
  • Internal capital market
  • Multinational corporation

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics
  • Political Science and International Relations

Cite this