|
| |
N° 2010-01 |
  |
| January 2010 |
The Elusive Impact of Investing Abroad for Japanese Parent Firms:
Can Disaggregation According to FDI Motives Help? |
Laura Hering
Tomohiko Inui
Sandra Poncet |
|
| In the present paper, we investigate whether previous findings of limited effects of investing
abroad on the firm’s performance can be explained by the aggregation of heterogeneous
effects depending on the FDI motives, sectors and locations. Results suggest, in line with
previous work, that on average Japanese outward FDI has limited effects (whether positive or
negative) on the activity of internationalizing firms. Fears of “Hollowing out” effects seem to
be more justified in the case of FDI to low income countries, for which a contraction of
employment and investment and exports is observed. By contrast, we observe a significant
positive employment effect for FDI in services, presumably reflecting the operational
complementarities between the affiliate and the parent. There is also some evidence of
positive labour productivity gains deriving essentially from FDI in manufacturing in high
GDP countries. |
Non-technical summary  |
|
Résumé
non-technique
en français |
|
| Full text |
| |
|
| FDI; multinationals; offshoring; propensity score matching |
Keywords |
| F14; F21; F23 |
JEL classification |
| |
|
| To visualise the full text document, use Acrobat
Reader |
|
| Contact:
|
|
| |
|
|
|
|
|
