Two-dimensional analysis of the impact of outward FDI on performance at home: Evidence from Japanese manufacturing firms

Kazunobu Hayakawa, Toshiyuki Matsuura, Kazuyuki Motohashi and Ayako Obashi ()

Japan and the World Economy, 2013, vol. 27, issue C, 25-33

Abstract: This paper empirically investigates two dimensions of changes in firm behavior and performance before and after foreign direct investment (FDI). The first dimension is the difference between vertical and horizontal FDI. The second dimension is the effect of outward FDI on firms’ production and non-production activities in the home country. In our careful empirical analysis we use the propensity score matching method to show that the impact of outward FDI differs by dimension, that is, by FDI type and firms’ production and non-production activities. In particular, while horizontal FDI increases demand for non-production workers, vertical FDI increases demand for skilled production workers.

Keywords: FDI; Multinational enterprises; Propensity score matching (search for similar items in EconPapers)
JEL-codes: F21 F23 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (25)

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Related works:
Working Paper: A two-dimensional analysis of the impact of outward FDI on performance at home: evidence from Japanese manufacturing firms (2010)
Working Paper: A Two-dimensional Analysis of the Impact of Outward FDI on Performance at Home: Evidence from Japanese Manufacturing Firms (2010)
Working Paper: A Two-dimensional Analysis of the Impact of Outward FDI on Performance at Home: Evidence from Japanese manufacturing firms (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:japwor:v:27:y:2013:i:c:p:25-33

DOI: 10.1016/j.japwor.2013.03.006

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