Reconsidering the Backward Vertical Linkages of Foreign Affiliates: Evidence from Japanese Multinationals

Kozo Kiyota; Toshiyuki Matsuura; Shujiro Urata; Yuhong Wei

doi:10.1016/j.worlddev.2007.08.006

Reconsidering the Backward Vertical Linkages of Foreign Affiliates: Evidence from Japanese Multinationals

Kozo Kiyota, Toshiyuki Matsuura, Shujiro Urata, Yuhong Wei

Research output: Contribution to journal › Article › peer-review

44 Citations (Scopus)

Abstract

This paper examines the determinants of the backward vertical linkages of Japanese foreign affiliates in manufacturing for the period 1994-2000, focusing on the local backward linkages, or local procurement in the host country. Our major findings are twofold. First, the unobserved affiliate-specific characteristics explain the large part of the variation of the backward linkages among foreign affiliates. Second, the experience of the affiliate has positive and sometimes nonlinear effects on local procurement for the affiliates, especially in Southeast Asia and China.

Original language	English
Pages (from-to)	1398-1414
Number of pages	17
Journal	World Development
Volume	36
Issue number	8
DOIs	https://doi.org/10.1016/j.worlddev.2007.08.006
Publication status	Published - 2008 Aug
Externally published	Yes

Keywords

China
Southeast Asia
foreign direct investment
local procurement
vertical backward linkages

ASJC Scopus subject areas

Geography, Planning and Development
Development
Sociology and Political Science
Economics and Econometrics

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1016/j.worlddev.2007.08.006

Cite this

@article{f62fbc08e6ce4f0e9244a2b513a2ebf1,

title = "Reconsidering the Backward Vertical Linkages of Foreign Affiliates: Evidence from Japanese Multinationals",

abstract = "This paper examines the determinants of the backward vertical linkages of Japanese foreign affiliates in manufacturing for the period 1994-2000, focusing on the local backward linkages, or local procurement in the host country. Our major findings are twofold. First, the unobserved affiliate-specific characteristics explain the large part of the variation of the backward linkages among foreign affiliates. Second, the experience of the affiliate has positive and sometimes nonlinear effects on local procurement for the affiliates, especially in Southeast Asia and China.",

keywords = "China, Southeast Asia, foreign direct investment, local procurement, vertical backward linkages",

author = "Kozo Kiyota and Toshiyuki Matsuura and Shujiro Urata and Yuhong Wei",

note = "Funding Information: The data used in this paper were prepared and analyzed in cooperation with the Research Institute of Economy, Trade, and Industry (RIETI). We wish to thank Ren{\'e} Belderbos, Kyoji Fukao, Keiko Ito, Fukunari Kimura, Hyeog Ug Kwon, Yoshiaki Omori, Etsuro Shioji, Robert Stern, Deborah Swenson, Eichi Tomiura, Ryuhei Wakasugi, Rossitza Wooster, and seminar participants at Keio University, RIETI, and Yokohama National University for their helpful comments on an earlier draft of the paper. This paper also benefited significantly from the comments of Beata Smarzynska Javorcik and three anonymous referees. Kozo Kiyota gratefully acknowledges the financial support of the Japan Society for the Promotion of Science (JSPS) 2006 Postdoctoral Fellowships for Research Abroad. The views expressed herein are those of the authors. ",

year = "2008",

month = aug,

doi = "10.1016/j.worlddev.2007.08.006",

language = "English",

volume = "36",

pages = "1398--1414",

journal = "World Development",

issn = "1873-5991",

publisher = "Elsevier BV",

number = "8",

}

TY - JOUR

T1 - Reconsidering the Backward Vertical Linkages of Foreign Affiliates

T2 - Evidence from Japanese Multinationals

AU - Kiyota, Kozo

AU - Matsuura, Toshiyuki

AU - Urata, Shujiro

AU - Wei, Yuhong

N1 - Funding Information: The data used in this paper were prepared and analyzed in cooperation with the Research Institute of Economy, Trade, and Industry (RIETI). We wish to thank René Belderbos, Kyoji Fukao, Keiko Ito, Fukunari Kimura, Hyeog Ug Kwon, Yoshiaki Omori, Etsuro Shioji, Robert Stern, Deborah Swenson, Eichi Tomiura, Ryuhei Wakasugi, Rossitza Wooster, and seminar participants at Keio University, RIETI, and Yokohama National University for their helpful comments on an earlier draft of the paper. This paper also benefited significantly from the comments of Beata Smarzynska Javorcik and three anonymous referees. Kozo Kiyota gratefully acknowledges the financial support of the Japan Society for the Promotion of Science (JSPS) 2006 Postdoctoral Fellowships for Research Abroad. The views expressed herein are those of the authors.

PY - 2008/8

Y1 - 2008/8

N2 - This paper examines the determinants of the backward vertical linkages of Japanese foreign affiliates in manufacturing for the period 1994-2000, focusing on the local backward linkages, or local procurement in the host country. Our major findings are twofold. First, the unobserved affiliate-specific characteristics explain the large part of the variation of the backward linkages among foreign affiliates. Second, the experience of the affiliate has positive and sometimes nonlinear effects on local procurement for the affiliates, especially in Southeast Asia and China.

AB - This paper examines the determinants of the backward vertical linkages of Japanese foreign affiliates in manufacturing for the period 1994-2000, focusing on the local backward linkages, or local procurement in the host country. Our major findings are twofold. First, the unobserved affiliate-specific characteristics explain the large part of the variation of the backward linkages among foreign affiliates. Second, the experience of the affiliate has positive and sometimes nonlinear effects on local procurement for the affiliates, especially in Southeast Asia and China.

KW - China

KW - Southeast Asia

KW - foreign direct investment

KW - local procurement

KW - vertical backward linkages

UR - http://www.scopus.com/inward/record.url?scp=47049096738&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=47049096738&partnerID=8YFLogxK

U2 - 10.1016/j.worlddev.2007.08.006

DO - 10.1016/j.worlddev.2007.08.006

M3 - Article

AN - SCOPUS:47049096738

SN - 1873-5991

VL - 36

SP - 1398

EP - 1414

JO - World Development

JF - World Development

IS - 8

ER -

Reconsidering the Backward Vertical Linkages of Foreign Affiliates: Evidence from Japanese Multinationals

Abstract

Keywords

ASJC Scopus subject areas

UN SDGs

Access to Document

Other files and links

Fingerprint

Cite this