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Expansion Abroad and Jobs at Home: Evidence from Japanese Multinational Enterprises

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  • Nobuaki Yamashita
  • Kyoji Fukao

Abstract

This paper examines the ‘exporting job’ hypothesis that expansion of overseas opera­tions of manufacturing multinational enterprises (MNEs) reduces home employment using data for Japanese MNEs. While the existing studies are mainly based on the industry level data, this paper presents the evidence using a newly constructed firm-level panel data set over the period 1991-2002. The evidence does not support the widely-held view in Japanese policy circles that that overseas operations of MNEs expand at the cost of home employment. On the contrary, there is some evidence that overseas operations may have helped to maintain the level of home employment.

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File URL: https://crawford.anu.edu.au/pdf/pep/apep-377.pdf
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Bibliographic Info

Paper provided by Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University in its series Asia Pacific Economic Papers with number 377.

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Length: 31 pages
Date of creation: 2008
Date of revision:
Handle: RePEc:csg:ajrcau:377

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References

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Citations

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Cited by:
  1. Keiko Ito & Ayumu Tanaka, . "Expansion of Overeas Production and the Impact on Employment in Domestic Supporting Industries: An Empirical Analysis Based on Buyer-Supplier Transaction Relationships," Chapters, Economic Research Institute for ASEAN and East Asia (ERIA).
  2. ANDO Mitsuyo & KIMURA Fukunari, 2012. "International Production Networks and Domestic Operations of Japanese Manufacturing Firms: Normal periods and the Global Financial Crisis," Discussion papers 12047, Research Institute of Economy, Trade and Industry (RIETI).
  3. Richard Kneller & Danny McGowan & Tomohiko Inui & Toshiyuki Matsuura, 2012. "Closure within multi-plant firms: evidence from Japan," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 148(4), pages 647-668, December.
  4. Keiko Ito & Ayumu Tanaka, 2014. "The Impact of Multinationals’ Overseas Expansion on Employment at Suppliers at Home: New Evidence from Firm-Level Transaction Relationship Data for Japan," Discussion papers e-13-008, Graduate School of Economics Project Center, Kyoto University.
  5. Shuhei Nishitateno, 2012. "Global Production Sharing and FDI-Trade Nexus: New Evidence from the Japanese Automobile Industry," Asia Pacific Economic Papers 397, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
  6. Nishitateno, Shuhei, 2013. "Global production sharing and the FDI–trade nexus: New evidence from the Japanese automobile industry," Journal of the Japanese and International Economies, Elsevier, vol. 27(C), pages 64-80.
  7. KWON Hyeog Ug, 2012. "Offshoring of Japanese Small and Medium Enterprises (Japanese)," Discussion Papers (Japanese) 12004, Research Institute of Economy, Trade and Industry (RIETI).
  8. Tanaka, Ayumu, 2013. "The causal effects of exporting on domestic workers: A firm-level analysis using Japanese data," Japan and the World Economy, Elsevier, vol. 28(C), pages 13-23.
  9. Shawn Arita & Kiyoyasu Tanaka, 2014. "Heterogeneous multinational firms and productivity gains from falling FDI barriers," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 150(1), pages 83-113, February.
  10. Shuhei Nishitateno, 2012. "Global Production Sharing and the FDI–Trade Nexus: New Evidence from the Japanese Automobile Industry," Departmental Working Papers 2012-13, The Australian National University, Arndt-Corden Department of Economics.
  11. Chin Hee Hahn & Yong-Seok Choi & Sadayuki Takii & Dionisius Narjoko & Rafaelita M. Aldaba & Shandre M. Thangavelu & Archanun Kohpaiboon & Juthathip Jongwanich & Alfons Palangkaraya & Cassey Lee & Keik, . "Impact of Globalization on Labor Market," Books, Economic Research Institute for ASEAN and East Asia (ERIA), number 2012-rpr-04 edited by Chine Hee HAHN & Dionisius Narjoko, August.
  12. ANDO Mitsuyo & KIMURA Fukunari, 2011. "Globalizing Corporate Activities in East Asia and Impact on Domestic Operations: Further evidence from Japanese manufacturing firms," Discussion papers 11034, Research Institute of Economy, Trade and Industry (RIETI).

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