TY - JOUR
T1 - Revisiting complementarity between Japanese FDI and the import of intermediate goods
T2 - Agglomeration effects and parent-firm heterogeneity
AU - Ito, Tadashi
AU - Matsuura, Toshiyuki
AU - Yang, Chih Hai
N1 - Funding Information:
This study is based on a report of Chih-Hai Yang?s visiting research project on trade policy and trade agreements at the Institute of Developing Economies (IDE), JETRO, in 2015. We thank Hisamitsu Saito, Ayako Obashi, Kozo Kiyota, Deborah Swenson, Shigeyuki Abe, Fukunari Kimura, Toshihiro Okubo, and other seminar participants at Asian Economic Panel Meeting. We also appreciate helpful comments received on presentations at the Western Economic Association International at Santiago, the University of British Columbia, and the Japanese Economic Association. Yang gratefully acknowledges financial support from IDE-JETRO. The study utilizes the data constructed under the auspices of JSPS KAKENHI grants JP26380311 and JP26285058. The authors appreciate the financial support from the Interchange Association, Japan.
Publisher Copyright:
© 2020 by the Asian Economic Panel and the Massachusetts Institute of Technology.
PY - 2020/10/1
Y1 - 2020/10/1
N2 - This study revisits the nexus between foreign direct investment (FDI) and international trade in the dynamic perspective, focusing on intermediate goods imports of affiliates of Japanese firms operating in China. To examine the effect of the formation of the agglomeration and the recent FDI made by small firms, both of which have been overlooked in the literature, we construct a unique parent-affiliate matched panel data set of trade in intermediate goods, and estimate a discrete-time hazard model over the 2000–06 period. We found that affiliates owned by firms in agglomerated regions in Japan have a shorter duration of trade in intermediate goods compared with affiliates owned by smaller Japanese firms.
AB - This study revisits the nexus between foreign direct investment (FDI) and international trade in the dynamic perspective, focusing on intermediate goods imports of affiliates of Japanese firms operating in China. To examine the effect of the formation of the agglomeration and the recent FDI made by small firms, both of which have been overlooked in the literature, we construct a unique parent-affiliate matched panel data set of trade in intermediate goods, and estimate a discrete-time hazard model over the 2000–06 period. We found that affiliates owned by firms in agglomerated regions in Japan have a shorter duration of trade in intermediate goods compared with affiliates owned by smaller Japanese firms.
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U2 - 10.1162/asep_a_00789
DO - 10.1162/asep_a_00789
M3 - Article
AN - SCOPUS:85091513378
SN - 1535-3516
VL - 19
SP - 90
EP - 106
JO - Asian Economic Papers
JF - Asian Economic Papers
IS - 3
ER -
