IDEAS home Printed from https://ideas.repec.org/a/taf/rjapxx/v29y2024i1p314-327.html
   My bibliography  Save this article

Impact of foreign ownership on firm productivity: evidence from Japanese manufacturing firms

Author

Listed:
  • Jaehyun Yoon

Abstract

This article presents the methodology to examine the impact of foreign ownership on firm productivity using firm-level data of Japanese manufacturing firms from 2000 to 2016, which include 1,458 listed companies in Japan. Firm productivity is represented by total factor productivity (TFP), which is estimated by the Olley–Pakes semiparametric estimation method to minimize the simultaneity problem in production function estimation. In the estimation of the impact of foreign ownership on firm productivity, system GMM estimation is applied to address a possible reversal causality problem between foreign ownership and firm productivity. Based on the case of the manufacturing firms in Japan, this article shows that 1 percentage point increase in foreign ownership increases the firm productivity by 0.06 percent. The evidence of this article supports the positive impact of foreign ownership on firm productivity and further implies that the promotion of foreign investment could be a policy option to improve firm productivity.HighlightsThis study analyzes the impact of foreign ownership on firm productivity.Firm-level data of the Japanese manufacturing firms from 2000 to 2016 are analyzed.The result supports the positive impact of foreign ownership on firm productivity.

Suggested Citation

  • Jaehyun Yoon, 2024. "Impact of foreign ownership on firm productivity: evidence from Japanese manufacturing firms," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 29(1), pages 314-327, January.
    • Handle: RePEc:taf:rjapxx:v:29:y:2024:i:1:p:314-327
    DOI: 10.1080/13547860.2021.2024363
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13547860.2021.2024363
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13547860.2021.2024363?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:rjapxx:v:29:y:2024:i:1:p:314-327. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rjap .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.