Firm productivity and the number of FDI destinations: Evidence from a non-parametric test
Using Japanese firm-level data, I examine whether more productive multinational enterprises (MNEs) invest in a larger number of foreign regions in the manufacturing sector. I employ the Kolmogorov–Smirnov (KS) test to compare the overall distribution of productivity by multinational status. I find that more productive firms tend to invest in a larger number of foreign regions.
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