During the past decade of declining FDI barriers, small domestic firms disproportionately contracted while large multinational firms experienced a substantial growth in Japan’s manufacturing sector. This paper quantitatively assesses the impact of FDI globalization on intra-industry reallocations and aggregate productivity. We calibrate the firm-heterogeneity model of Eaton, Kortum, and Kramarz (2011) to micro-level data on Japanese multinational firms. Estimating the structural parameters of the model, we demonstrate that the model can strongly replicate the entry and sales patterns of Japanese multinationals. Counterfactual simulations show that declining FDI barriers lead to a disproportionate expansion of foreign production by more efficient firms relative to less efficient firms. A hypothetical 20% reduction in FDI barriers is found to generate a 30.7% improvement in aggregate productivity through market-share reallocation.
権利
Copyrights 日本貿易振興機構（ジェトロ）アジア経済研究所 / Institute of Developing Economies, Japan External Trade Organization (IDE-JETRO) http://www.ide.go.jp
雑誌名
IDE Discussion Paper
雑誌名(英)
IDE Discussion Paper
巻
324
発行年
2012-02-01
出版者
Institute of Developing Economies (IDE-JETRO)
著者版フラグ
publisher
日本十進分類法
335.5021
JEL分類
JEL:F10 - General
JEL:F23 - Multinational Firms; International Business
JEL:L23 - Organization of Production
JEL:R12 - Size and Spatial Distributions of Regional Economic Activity;
JEL:R30 - General
JEL:L25 - Firm Performance: Size, Diversification, and Scope
地域/国名
日本
キーワード(LSH)
Japan
International business enterprises
Foreign investments
Manufacturing industries
Industrial management
Multinational firms
FDI
Firm heterogeneity
Investment Liberalization
Heterogeneous multinational firms and productivity gains from falling FDI barriers
本文
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