Title
A macroeconomic model of direct investment in foreign affiliates of Japanese firms
Document Type
Journal article
Source Publication
Japan and the World Economy
Publication Date
12-1-2000
Volume
12
Issue
4
First Page
311
Last Page
335
Keywords
Foreign direct investment (FDI), International intra-firm trade, Macroeconomic model, Simulation analysis
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.
DOI
10.1016/S0922-1425(00)00045-1
Print ISSN
09221425
Publisher Statement
Copyright © 2000 Elsevier Science B.V. Access to external full text or publisher's version may require subscription.
Full-text Version
Publisher’s Version
Language
English
