How Does FDI In East Asia Affect Performance At Home?: Evidence From Electrical Machinery Manufacturing Firms

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Executive Summary

This paper pinpoints the impact of Japanese electronic machinery FDIs on productivity at home. The analysis is based on the activity level of firms and not on their ready-made level. For example, if a firm has more than two kinds of activities such as upstream activity and downstream activity, the authors treat these activities as different. The empirical results are consistent with their theoretical predictions: the horizontal FDI of an activity does not necessarily have the same significant positive impact on the productivity of domestic activities as the invested activity.

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