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Productivity of Offshore Affiliates and Distance from Headquarters: Evidence from Affiliate-Level Data of Japanese Multinationals

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  • LU Yi
  • TOMIURA Eiichi
  • ZHU Lianming

Abstract

Multinational enterprises (MNEs) have affiliates often with different distances from headquarters (HQ). This paper examines the relationship between distance and productivity of offshore affiliates based on affiliate-level data of Japanese MNEs. Affiliates located farther from the HQ home country tend to be significantly more productive. This finding is robust even if we control for host country factors, industry effects, affiliate attributes, and parent MNE effects, including technology transfers from HQ.

Suggested Citation

  • LU Yi & TOMIURA Eiichi & ZHU Lianming, 2020. "Productivity of Offshore Affiliates and Distance from Headquarters: Evidence from Affiliate-Level Data of Japanese Multinationals," Discussion papers 20047, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:20047
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    References listed on IDEAS

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    Cited by:

    1. TANI Naoki & OGAWA Eiji, 2024. "Firms' Internationalization Decisions and Demand Learning," Discussion papers 24019, Research Institute of Economy, Trade and Industry (RIETI).

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