A macroeconomic model of direct investment in foreign affiliates of Japanese firms

Yue MA, Koichiro MORIKAWA, Ronald SHONE

Research output: Journal PublicationsJournal Article (refereed)Researchpeer-review

13 Citations (Scopus)

Abstract

This paper analyses the operations of the Japanese multinational corporations in the world economy by constructing and estimating a Japanese foreign direct investment system. This system models the determinants of manufacturing foreign direct investment (FDI), the trade between Japan and her overseas affiliates as well as the sales of the manufacturing subsidiaries and those of the trading subsidiaries. The error-correction modelling techniques are adopted for estimation in order to capture both the short- and long-run adjustment processes. Finally, simulations are conducted on the model to analyse the effects of changes in the world economy.
Original languageEnglish
Pages (from-to)311-335
Number of pages25
JournalJapan and the World Economy
Volume12
Issue number4
DOIs
Publication statusPublished - 1 Dec 2000

Fingerprint

world economy
direct investment
foreign investment
macroeconomics
manufacturing
firm
multinational corporation
system model
overseas
sales
Japan
determinants
simulation
Subsidiaries
Foreign affiliates
Macroeconomic models
Direct investment
Japanese firms
World economy
Foreign direct investment

Keywords

  • Foreign direct investment (FDI)
  • International intra-firm trade
  • Macroeconomic model
  • Simulation analysis

Cite this

MA, Yue ; MORIKAWA, Koichiro ; SHONE, Ronald. / A macroeconomic model of direct investment in foreign affiliates of Japanese firms. In: Japan and the World Economy. 2000 ; Vol. 12, No. 4. pp. 311-335.
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A macroeconomic model of direct investment in foreign affiliates of Japanese firms. / MA, Yue; MORIKAWA, Koichiro; SHONE, Ronald.

In: Japan and the World Economy, Vol. 12, No. 4, 01.12.2000, p. 311-335.

Research output: Journal PublicationsJournal Article (refereed)Researchpeer-review

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