A two-dimensional analysis of the impact of outward FDI on performance at home: evidence from Japanese manufacturing firms
This paper empirically investigates two areas of changes in firm behavior and performance at home before and after investing abroad. The first change is dependent upon the type of foreign direct investment (FDI): horizontal FDI or vertical FDI. The second change is dependent upon the firmâ€™s domestic activities: production activities or non-production activities. From a theoretical standpoint, the impact of outward FDIs differs not only by type, but according to the firmâ€™s activities. By exploiting two types of firm-level data that enable us to distinguish between production and non-production activities, our paper provides a detailed picture of the intra-firm changes in behavior and performance that occur as a result of production globalization.
|Date of creation:||Dec 2010|
|Date of revision:|
|Publication status:||Published in IDE Discussion Paper. No. 273. 2010. 12|
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