TY - JOUR
T1 - The role of multinational firms in international trade
T2 - The case of Japan
AU - Kiyota, Kozo
AU - Urata, Shujiro
N1 - Funding Information:
The METI database used in the paper was prepared and analyzed in cooperation with the Research Institute of Economy, Trade and Industry (RIETI). We would like to thank Kyoji Fukao, Keiko Ito, Fukunari Kimura, Hyeog Ug Kwon, Robert Stern, and an anonymous referee for helpful comments and Judith Jackson for editorial assistance. Kozo Kiyota gratefully acknowledges the financial support from the Japan Society for the Promotion of Science (JSPS) 2006 Postdoctoral Fellowships for Research Abroad. The views expressed herein are those of the authors.
PY - 2008/8
Y1 - 2008/8
N2 - This paper examines the role of multinational firms in international trade using firm-level panel data for Japanese firms between 1994 and 2000. Our results indicate that multinational firms dominate Japanese trade. In 2000, only 12.4 percent of Japanese firms were multinationals but they accounted for 93.6 and 81.2 percent of Japanese exports and imports, respectively. We found that multinational firms emerged from being exporters/importers. These results imply that firms do not make the choice of either exporting or undertaking FDI, contrary to the findings of previous studies. Rather, exporters make a decision on whether or not to undertake FDI.
AB - This paper examines the role of multinational firms in international trade using firm-level panel data for Japanese firms between 1994 and 2000. Our results indicate that multinational firms dominate Japanese trade. In 2000, only 12.4 percent of Japanese firms were multinationals but they accounted for 93.6 and 81.2 percent of Japanese exports and imports, respectively. We found that multinational firms emerged from being exporters/importers. These results imply that firms do not make the choice of either exporting or undertaking FDI, contrary to the findings of previous studies. Rather, exporters make a decision on whether or not to undertake FDI.
KW - Foreign direct investment
KW - International trade
KW - Multinational firms
UR - http://www.scopus.com/inward/record.url?scp=44449178258&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=44449178258&partnerID=8YFLogxK
U2 - 10.1016/j.japwor.2007.03.003
DO - 10.1016/j.japwor.2007.03.003
M3 - Article
AN - SCOPUS:44449178258
SN - 0922-1425
VL - 20
SP - 338
EP - 352
JO - Japan and The World Economy
JF - Japan and The World Economy
IS - 3
ER -
