S-WoPEc
 
Scandinavian Working Papers in Economics
HomeAboutSeriesSubject/JEL codesAdvanced Search
The Economic Research Institute, Stockholm School of Economics SSE/EFI Working Paper Series in Economics and Finance

No 369:
Outward FDI and Home Country Exports: Japan, the United States, and Sweden

Robert E. Lipsey, Eric Ramstetter and Magnus Blomström ()

Abstract: Within Japanese multinational firms, parent exports from Japan to a foreign region are positively related to production in that region by affiliates of that parent. A firm that produces a million Yen more in a region also tends to export about a million yen more to that region, given the parent's home production in Japan and the region's size and income level. This relationship is similar to that found for Swedish and U.S. multinationals in parallel studies.

A Japanese parent's worldwide exports tend to be larger, relative to its output, the larger the firm's overseas production. In this respect also, Japanese firms resembled U.S. multinationals.

A Japanese parent's employment, given the level of its production, tends to be higher, the greater the production abroad by the firm's foreign affiliates. Japanese firms' behavior in this respect is similar to that of Swedish firms, but contrasts with that of U.S. firms. U.S. firms appear to be reducing employment at home, relative to production, by allocating labor-intensive parts of their production to affiliates in developing countries. Swedish firms seem to be allocating the more capital-intensive parts of their production to their foreign affiliates, most of which are in high-wage countries. We conclude that in Japanese firms, supervisory and ancillary employment at home to service foreign operations outweighs any allocation of labor-intensive production to developing countries.

Keywords: Multinational firms; trade; (follow links to similar papers)

JEL-Codes: F14; F23; (follow links to similar papers)

21 pages, March 22, 2000

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Full text versions of the paper:

hastef0369.pdf.zip    PDF-file (zipped) (38kB) 
hastef0369.pdf    PDF-file (46kB) 
hastef0369.ps.zip    PKZipped PostScript (51kB) 
hastef0369.ps    PostScript file (471kB) 
Files with additional material for the paper:
hastef0369.tab.xls    Tables, Excel file (41kB) 
Download Statistics

Questions (including download problems) about the papers in this series should be directed to Helena Lundin ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design by Joachim Ekebom

Handle: RePEc:hhs:hastef:0369 This page was generated on 2014-12-14 19:22:59