FDI, ownership structure, and productivity

Bibliographic Data

ID21583713
AuthorsTadashi Ito (0000-0002-5427-7609, Gakushuin University, corresponding author), Ayumu Tanaka (0000-0001-9858-9236, Aoyama Gakuin University)
Year2022
Volume64
Pages101158
Publication date2022-12-01
Open AccessYes
TypeARTICLE
VenueJapan and the World Economy (JOURNAL)
Journal identifiersISSN: 0922-1425 • E-ISSN: 1879-2006
PublisherElsevier BV (PUBLISHER)
DOI10.1016/j.japwor.2022.101158
OpenAlexW3036007064
LanguageEN
Citations received1
References cited16

The standard firm heterogeneity model of FDI considers the case of whole ownership of foreign affiliates. However, there exist many partially-owned foreign affiliates. This paper builds a model based on Helpman et al. (2004) to allow various ownership structures and posits some testable hypotheses on the relationship between productivity and ownership shares/structures. The empirical part corroborates these hypotheses, showing that high productivity firms tend to have a higher ownership share in their affiliates, and lower productivity firms tend to opt for joint-ventures with wholesalers and/or local/3rd country partners

Business · Economics · Empirical evidence · Foreign direct investment · Foreign ownership · Industrial organization · International trade · Labour economics · Macroeconomics · Productivity · Corporate Finance and Governance · Global trade and economics · International Business and FDI

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Open DOIOpen Access