Is Japanese FDI a Substitute for or a Complement to Trade in Asia?
This paper analyzes the effects of Japanese FDI on international trade in manufacturing industries during the period 1989-2004. The panel regressions are conducted for the net export of the six selected Asian countries at a sectoral level. The econometric analysis reveals some FDI tends to simulate bilateral trade, while other FDI has a tendency to reduce the volume of bilateral trade. The analysis also reveals that FDI into non-manufacturing sectors and all other manufacturing sectors has spillover effects on trade of manufactured goods in some countries and manufacturing industries. The relationship between capital movement and bilateral trade is not one consistent pattern of substitutability or complementarity but differs across manufacturing sectors and countries in Asia.
|Date of creation:||Aug 2008|
|Date of revision:||Oct 2008|
|Contact details of provider:|| Postal: Kawauchi, Aoba-ku, Sendai 980-8476|
Web page: http://www.econ.tohoku.ac.jp/econ/english/index.html
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Robert E. Lipsey, 2002. "Home and Host Country Effects of FDI," NBER Working Papers 9293, National Bureau of Economic Research, Inc.
- Magnus Blomstrom & Robert E. Lipsey & Ksenia Kulchycky, 1988.
"U.S. and Swedish Direct Investment and Exports,"
in: Trade Policy Issues and Empirical Analysis, pages 257-302
National Bureau of Economic Research, Inc.
- Wong, Kar-yiu, 1986. "Are international trade and factor mobility substitutes?," Journal of International Economics, Elsevier, vol. 21(1-2), pages 25-43, August.
- Markusen, James R., 1983. "Factor movements and commodity trade as complements," Journal of International Economics, Elsevier, vol. 14(3-4), pages 341-356, May.
- Purvis, Douglas D, 1972.
"Technology, Trade and Factor Mobility,"
Royal Economic Society, vol. 82(327), pages 991-99, September.
- Roger Svensson, 1996. "Effects of overseas production on home country exports: Evidence based on Swedish multinationals," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 132(2), pages 304-329, September.
- Belderbos, Rene & Sleuwaegen, Leo, 1998. "Tariff jumping DFI and export substitution: Japanese electronics firms in Europe," International Journal of Industrial Organization, Elsevier, vol. 16(5), pages 601-638, September.
- Lipsey, Robert E & Weiss, Merle Yahr, 1984. "Foreign Production and Exports of Individual Firms," The Review of Economics and Statistics, MIT Press, vol. 66(2), pages 304-08, May.
- Riddell, W Craig, 1981. "Contemporaneous Correlation in Wage Contract Studies," Econometrica, Econometric Society, vol. 49(2), pages 515-16, March.
- Collins, William J & O'Rourke, Kevin Hjortshøj & Williamson, Jeffrey G, 1997.
"Were Trade and Factor Mobility Substitutes in History?,"
CEPR Discussion Papers
1661, C.E.P.R. Discussion Papers.
- William J. Collins & Kevin H. O'Rourke & Jeffrey Williamson, 1997. "Were Trade and Factor Mobility Substitutes in History?," NBER Working Papers 6059, National Bureau of Economic Research, Inc.
- Collins, W-J & O'Rourke, K-H & Williamson, J-G, 1997. "Were Trade and Factor Mobility Substitutes in History?," Papers 97/15, College Dublin, Department of Political Economy-.
- Breusch, T S & Pagan, A R, 1979. "A Simple Test for Heteroscedasticity and Random Coefficient Variation," Econometrica, Econometric Society, vol. 47(5), pages 1287-94, September.
- Lipsey, Robert E & Weiss, Merle Yahr, 1981. "Foreign Production and Exports in Manufacturing Industries," The Review of Economics and Statistics, MIT Press, vol. 63(4), pages 488-94, November.
- Kloek, T, 1981. "OLS Estimation in a Model Where a Microvariable Is Explained by Aggregates and Contemporaneous Disturbances Are Equicorrelated," Econometrica, Econometric Society, vol. 49(1), pages 205-07, January.
- Ken Miyajima, 2005. "Real Exchange Rates in Growing Economies; How Strong Is the Role of the Nontradables Sector?," IMF Working Papers 05/233, International Monetary Fund.
When requesting a correction, please mention this item's handle: RePEc:toh:tergaa:236. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tohoku University Library)
If references are entirely missing, you can add them using this form.