Firm Heterogeneity and the Structure of Export and FDI:Evidence from Japanese Manufacturing Industries
AbstractThe percentage of exporters and multinational enterprises (MNEs) varies substantially across industries. We extend the firm heterogeneity model presented in Helpman et al. (2004) to derive testable predictions about the prevalence of these internationalized modes. The model indicates that intra-industry firm heterogeneity and R&D intensity play large roles in the inter-industry variation of the number of internationalized firms. We investigate whether these factors as well as import tariff affect the structure of export and foreign direct investment (FDI) using Japanese industry-level data. We obtain results that are consistent with the model. First, industries with larger productivity dispersion have a larger percentage of non-MNE exporters, a larger percentage of MNEs, and a larger percentage of the sum of exporters and MNEs. Second, MNEs are heavily concentrated in R&D intensive industries. In addition, we reveal that lower import tariffs raise the percentage of exporters and MNEs in line with Melitz (2003).
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Graduate School of Economics Project Center, Kyoto University in its series Discussion papers with number e-09-003.
Length: 21 pages
Date of creation: Mar 2010
Date of revision:
Contact details of provider:
Postal: Yoshida-Honmachi, Sakyo-ku, Kyoto 606-8501
Web page: http://www.econ.kyoto-u.ac.jp/projectcenter/
More information through EDIRC
Firm heterogeneity; Multinationals; Exports; Foreign direct investment;
Find related papers by JEL classification:
- F1 - International Economics - - Trade
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Elhanan Helpman & Marc Melitz & Yona Rubinstein, 2007.
"Estimating Trade Flows: Trading Partners and Trading Volumes,"
NBER Working Papers
12927, National Bureau of Economic Research, Inc.
- Elhanan Helpman & Marc Melitz & Yona Rubinstein, 2008. "Estimating Trade Flows: Trading Partners and Trading Volumes," The Quarterly Journal of Economics, MIT Press, vol. 123(2), pages 441-487, 05.
- Rubinstein, Yona & Helpman, Elhanan & Melitz, Marc, 2008. "Estimating Trade Flows: Trading Partners and Trading Volumes," Scholarly Articles 3228230, Harvard University Department of Economics.
- Bernard, Andrew & Redding, Stephen J & Schott, Peter, 2004.
"Comparative Advantage and Heterogenous Firms,"
CEPR Discussion Papers
4622, C.E.P.R. Discussion Papers.
- Andrew B. Bernard & Stephen Redding & Peter K. Schott, 2004. "Comparative Advantage and Heterogeneous Firms," CEP Discussion Papers dp0643, Centre for Economic Performance, LSE.
- Andrew B. Bernard & Stephen Redding & Peter K. Schott, 2004. "Comparative Advantage and Heterogeneous Firms," NBER Working Papers 10668, National Bureau of Economic Research, Inc.
- Andrew Bernard & Stephen Redding & Peter Schott, 2004. "Comparative advantage and heterogeneous firms," IFS Working Papers W04/24, Institute for Fiscal Studies.
- Elhanan Helpman & Marc J. Melitz & Stephen R. Yeaple, 2004.
"Export Versus FDI with Heterogeneous Firms,"
American Economic Review,
American Economic Association, vol. 94(1), pages 300-316, March.
- Keith Head & John Ries, 2003.
"Heterogeneity and the FDI versus Export Decision of Japanese Manufacturers,"
NBER Working Papers
10052, National Bureau of Economic Research, Inc.
- Head, Keith & Ries, John, 2003. "Heterogeneity and the FDI versus export decision of Japanese manufacturers," Journal of the Japanese and International Economies, Elsevier, vol. 17(4), pages 448-467, December.
- Eiichi Tomiura, 2005.
"Foreign Outsourcing, Exporting, and FDI: A Productivity Comparison at the Firm Level,"
Discussion Paper Series
168, Research Institute for Economics & Business Administration, Kobe University.
- Tomiura, Eiichi, 2007. "Foreign outsourcing, exporting, and FDI: A productivity comparison at the firm level," Journal of International Economics, Elsevier, vol. 72(1), pages 113-127, May.
- WAKASUGI Ryuhei & TODO Yasuyuki & SATO Hitoshi & NISHIOKA Shuichiro & MATSUURA Toshiyuki & ITO Banri & TANAKA Ayumu, 2008. "The Internationalization of Japanese Firms: New Findings Based on Firm-Level Data," Discussion papers 08036, Research Institute of Economy, Trade and Industry (RIETI).
- Brainard, S Lael, 1997. "An Empirical Assessment of the Proximity-Concentration Trade-off between Multinational Sales and Trade," American Economic Review, American Economic Association, vol. 87(4), pages 520-44, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Graduate School of Economics Project Center).
If references are entirely missing, you can add them using this form.