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Globalisation, multinationals and productivity in Japan’s lost decade

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  • Kneller, Richard
  • McGowan, Danny
  • Inui, Tomohiko
  • Matsuura, Toshiyuki

Abstract

This paper studies the process of plant exit and productivity growth in Japan during the ‘lost decade’. A productivity decomposition shows the low rate of productivity growth at the aggregate level to be due to slow within plant productivity growth and a small contribution from the entry and exit components. We find the causes of plant exit to be similar to results in other country contexts except we find no effect from import competition. Our results suggest that the low productivity growth is attributable to high entry barriers and little to the shutting of productive plants by MNEs.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of the Japanese and International Economies.

Volume (Year): 26 (2012)
Issue (Month): 1 ()
Pages: 110-128

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Handle: RePEc:eee:jjieco:v:26:y:2012:i:1:p:110-128

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Web page: http://www.elsevier.com/locate/inca/622903

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Keywords: Exit; Productivity; Globalisation; Multinational firms; Japan;

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Cited by:
  1. Ioannis Bournakis & Sushanta Mallick & David Kernohan & Dimitris A.Tsouknidis, 2013. "Measuring Firm-Level Productivity Convergence in the UK: The Role of Taxation and R&D Investment," Working Papers, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research 45, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
  2. Richard Kneller & Danny McGowan & Tomohiko Inui & Toshiyuki Matsuura, 2012. "Closure within multi-plant firms: evidence from Japan," Review of World Economics (Weltwirtschaftliches Archiv), Springer, Springer, vol. 148(4), pages 647-668, December.
  3. Norback, Pehr-Johan & Tekin-Koru, Ayca & Waldkirch, Andreas, 2013. "Multinational Firms and Plant Divestiture," MPRA Paper 45957, University Library of Munich, Germany.

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