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Firm Heterogeneity and Different Modes of Internationalization: Evidence from Japanese Firms

Author

Listed:
  • 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.

Suggested Citation

  • Ryuhei Wakasugi & Ayumu Tanaka, 2009. "Firm Heterogeneity and Different Modes of Internationalization: Evidence from Japanese Firms," KIER Working Papers 681, Kyoto University, Institute of Economic Research.
  • Handle: RePEc:kyo:wpaper:681
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    File URL: http://www.kier.kyoto-u.ac.jp/DP/DP681.pdf
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    Cited by:

    1. Catelén, Ana Laura, 2017. "Perfiles de empresas exportadoras. El caso de Mar del Plata," Nülan. Deposited Documents 2860, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    2. Joachim Wagner, 2012. "International trade and firm performance: a survey of empirical studies since 2006," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 148(2), pages 235-267, June.

    More about this item

    Keywords

    productivity-cutoff; export; FDI; North; South; East Asia;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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