Ryuhei Wakasugi () (Institute of Economic Research, Kyoto University) Ayumu Tanaka (Graduate School of Economics, Kyoto University)
Abstract
This paper examines how differently productivity heterogeneity of firms sorts their export and foreign direct investment (FDI) between North and South as well as between single and multiple destinations. The empirical examinations based on 12,000 Japanese firm-level data present new findings; the rank of productivity differently sorts the internationalization modes between North (North America and Europe) and South (East Asia); the productivity of firms internationalizing in both North America and Europe is remarkably higher than that of firms internationalizing in either North America or Europe, regardless the modes of internationalization, export or FDI, even if the productivity of firms internationalizing in North America is similar to the productivity of firms in Europe. This paper confirms that the difference in wage rate or fixed costs causes different modes of internationalization from the standard theoretical prediction based on the Helpman-Melitz-Yeaple model.
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Publisher Info
Paper provided by Kyoto University, Institute of Economic Research in its series KIER Working Papers with number
681.
Find related papers by JEL classification: F10 - International Economics - - Trade - - - General F14 - International Economics - - Trade - - - Country and Industry Studies of Trade F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
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