Global production sharing and the FDI-trade nexus: New evidence from the Japanese automobile industry

Shuhei Nishitateno

    Research output: Contribution to journalArticle

    Abstract

    The growing importance of global production sharing makes the nexus between outward foreign direct investment (FDI) and trade in intermediate goods ever more important. This study employs newly-constructed product-level data covering 32 products and 49 host countries over the period 1993-2008 and finds evidence that FDI by upstream firms leads to additional exports of intermediate goods from the home country. The finding of a complementary relationship between FDI and intermediate exports from Japan runs counter to the popular view that the growing overseas activity of multinational enterprises could replace intermediate exports from a home country, thereby depriving the home country of job opportunities.
    Original languageEnglish
    Pages (from-to)64-80
    JournalJournal of the Japanese and International Economies
    Volume27
    Issue number2013
    DOIs
    Publication statusPublished - 2013

    Fingerprint Dive into the research topics of 'Global production sharing and the FDI-trade nexus: New evidence from the Japanese automobile industry'. Together they form a unique fingerprint.

    Cite this