This paper empirically investigates two areas of changes in firm behavior and performance at home before and after investing abroad. The first is the type of foreign direct investment (FDI): horizontal FDI or vertical FDI. The second is the firm's domestic activities of interest: production activity and non-production activity. From a theoretical standpoint, the impact of outward FDIs differs not only by type, but according to the firmfs activities. By exploiting two types of firm-level data that enable us to distinguish between production and non-production activities, our work provides a detailed picture of the intra-firm changes in behavior and performance that occur as a result of globalizing production.
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Paper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion papers with number
09053.
Length: 26 pages Date of creation: Oct 2009 Date of revision: Handle: RePEc:eti:dpaper:09053
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