TY - JOUR
T1 - Two-dimensional analysis of the impact of outward FDI on performance at home
T2 - Evidence from Japanese manufacturing firms
AU - Hayakawa, Kazunobu
AU - Matsuura, Toshiyuki
AU - Motohashi, Kazuyuki
AU - Obashi, Ayako
PY - 2013/8
Y1 - 2013/8
N2 - This paper empirically investigates two dimensions of changes in firm behavior and performance before and after foreign direct investment (FDI). The first dimension is the difference between vertical and horizontal FDI. The second dimension is the effect of outward FDI on firms' production and non-production activities in the home country. In our careful empirical analysis we use the propensity score matching method to show that the impact of outward FDI differs by dimension, that is, by FDI type and firms' production and non-production activities. In particular, while horizontal FDI increases demand for non-production workers, vertical FDI increases demand for skilled production workers.
AB - This paper empirically investigates two dimensions of changes in firm behavior and performance before and after foreign direct investment (FDI). The first dimension is the difference between vertical and horizontal FDI. The second dimension is the effect of outward FDI on firms' production and non-production activities in the home country. In our careful empirical analysis we use the propensity score matching method to show that the impact of outward FDI differs by dimension, that is, by FDI type and firms' production and non-production activities. In particular, while horizontal FDI increases demand for non-production workers, vertical FDI increases demand for skilled production workers.
KW - FDI
KW - Multinational enterprises
KW - Propensity score matching
UR - http://www.scopus.com/inward/record.url?scp=84877000767&partnerID=8YFLogxK
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U2 - 10.1016/j.japwor.2013.03.006
DO - 10.1016/j.japwor.2013.03.006
M3 - Article
AN - SCOPUS:84877000767
SN - 0922-1425
VL - 27
SP - 25
EP - 33
JO - Japan and The World Economy
JF - Japan and The World Economy
ER -
