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Firm Productivity and Foreign Direct Investment in the Services Sector: A Firm-Level Analysis using Japanese Data

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  • Ayumu Tanaka

Abstract

Using Japanese firm-level data, I examine whether multinational enterprises (MNEs) are more productive than non-MNEs in the services sector. I employ the Kolmogorov-Smirnov (KS) test to compare the overall distribution of productivity by multinational status. The results indicate that MNEs tend to be more productive than non-MNEs in the services sector and suggest that the standard firm heterogeneity model can well explain foreign direct investment (FDI) by firms in the services sector.

Suggested Citation

  • Ayumu Tanaka, 2012. "Firm Productivity and Foreign Direct Investment in the Services Sector: A Firm-Level Analysis using Japanese Data," Discussion papers e-11-008, Graduate School of Economics Project Center, Kyoto University.
    • Handle: RePEc:kue:dpaper:e-11-008
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    References listed on IDEAS

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    More about this item

    Keywords

    Services sector; Firm heterogeneity; Multinationals; Foreign direct investment;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L8 - Industrial Organization - - Industry Studies: Services

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