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Exprots, FDI, and Productivity: Evidence from Japanese Manufacturing Firms

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Author Info
Hyeog Ug Kwon
Abstract

This paper employs nonparametric tests and Japanese firm level data to examine the hypothesis put forward by Helpman, Melitz and Yeaple (2003) and Head and Ries (2003) that firms engaging in FDI are more productive than other firms. We find that the productivity distribution of foreign firms operating in Japan dominates that of Japanese multinationals, which dominates that of exporters, which in turn dominates that of non-exporters, thus confirming the theoretical predictions.

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File URL: http://hi-stat.ier.hit-u.ac.jp/research/discussion/2007/pdf/D07-214.pdf
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Paper provided by Institute of Economic Research, Hitotsubashi University in its series Hi-Stat Discussion Paper Series with number d07-214.

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Date of creation: Jun 2007
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Handle: RePEc:hst:hstdps:d07-214

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Related research
Keywords: Export; FDI; TFP; nonparametric Kolmogorov-Smirnov test;

Find related papers by JEL classification:
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade
F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
D21 - Microeconomics - - Production and Organizations - - - Firm Behavior

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