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Networked FDI and third-country intra-firm trade

Author

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  • Toshihiro Okubo

    (Faculty of Economics, Keio University)

  • Yuta Watabe

    (Pennsylvania State University)

Abstract

In the wave of globalization, foreign direct investment (FDI) is networked. Affiliates locate across countries and trade among them. This paper investigates the FDI networks, in particular, third-country intra-firm trade using the Japanese foreign affiliate data. We find active third-country sales and sourcing within the firm boundary, but only large firms tend to construct production networks. Driving forces for FDI networks are in the allocation of ownership and human resources by parent firms.

Suggested Citation

  • Toshihiro Okubo & Yuta Watabe, 2020. "Networked FDI and third-country intra-firm trade," Keio-IES Discussion Paper Series 2020-014, Institute for Economics Studies, Keio University.
    • Handle: RePEc:keo:dpaper:2020-014
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    Cited by:

    1. LIANG, Licheng, 2023. "Resilience of Japanese Multinational Enterprises' Production Networks during the COVID-19 Pandemic," Discussion Paper Series 742, Institute of Economic Research, Hitotsubashi University.

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    More about this item

    Keywords

    multinational firms; networked FDI; intra-firm trade; sales and sourcing; third-country;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F15 - International Economics - - Trade - - - Economic Integration

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