Technological Capability and FDI in Asia: Firm-level Relationships among Japanese Manufacturers
AbstractThe present paper reexamines the relationship between technological capabilities and FDI decisions at the firm level. The data cover 118 300 Japanese firms in all manufacturing industries. The R&D of Japanese firms has a noticeably weaker relationship with FDI in Asia than with FDI in industrial countries. This finding is confirmed to be robust even when alternative estimation techniques are used and when R&D expenditure data are replaced by patent data. The estimation results also reveal non-negligible fixed entry costs for FDI, a finding consistent with the observation that only approximately 2 percent of the firms invest abroad. Copyright 2005 East Asian Economic Association.
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Bibliographic InfoArticle provided by East Asian Economic Association in its journal Asian Economic Journal.
Volume (Year): 19 (2005)
Issue (Month): 3 (09)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=1351-3958
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