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Networked FDI: Sales and sourcing patterns of Japanese foreign affiliates

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  • Richard BALDWIN
  • OKUBO Toshihiro

Abstract

Using firm-level data on the sales and sourcing patterns of Japanese affiliates, this paper suggests that very little foreign direct investment (FDI) falls neatly into the standard bins of horizontal, vertical and export-platform FDI. Most affiliates import some intermediates and export some output, suggesting a pattern that might be called "networked FDI." This suggests that the nature of FDI is influenced by "regional comparative advantage," i.e., the proximity of markets and suppliers.

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Bibliographic Info

Paper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion papers with number 12027.

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Length: 26 pages
Date of creation: Apr 2012
Date of revision:
Handle: RePEc:eti:dpaper:12027

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Cited by:
  1. Kamran Bilir & Davin Chor & Kalina Manova, 2014. "Host-Country Financial Development and Multinational Activity," NBER Working Papers 20046, National Bureau of Economic Research, Inc.
  2. JINJI Naoto & Xingyuan ZHANG, 2013. "Innovation in the Host Country and the Structure of Foreign Direct Investment: Evidence from Japanese multinationals," Discussion papers 13060, Research Institute of Economy, Trade and Industry (RIETI).
  3. THORBECKE, Willem & Nimesh SALIKE, 2013. "Foreign Direct Investment in East Asia," Policy Discussion Papers 13003, Research Institute of Economy, Trade and Industry (RIETI).
  4. Nobuhiro Hosoe, 2013. "Japanese Manufacturing Facing the Power Crisis after Fukushima: A Dynamic Computable General Equilibrium Analysis with Foreign Direct Investment," GRIPS Discussion Papers 13-01, National Graduate Institute for Policy Studies.
  5. ITO Tadashi, 2013. "FTA and Export Platform Foreign Direct Investment: Evidence from Japanese firm level data," Discussion papers 13100, Research Institute of Economy, Trade and Industry (RIETI).

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