2018 Fiscal Year Research-status Report
When free trade agreement meets competition----How does EU-Korea FTA affect Japanese firms' investment behavior
| Project/Area Number |
18K12777
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| Research Institution | Hosei University |
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Principal Investigator |
倪 彬 法政大学, 経済学部, 准教授 (60779677)
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| Project Period (FY) |
2018-04-01 – 2021-03-31
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| Keywords | Free trade agreement / outward FDI / competition |
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| Outline of Annual Research Achievements |
In the past year, I have successfully collected the Japanese firm-level and affiliate-level micro data, from the statistics group of MEXI. However, the process was far more complicated and time-consuming than I have expected. Nevertheless, I used the rest of the time to clean up the datasets, and tried to merge these two different datasets into a unified one. Given the richness of the micro data, and detailed information on each firm and its affiliates, I have drawn some stylized facts based on the cleaned master dataset, for example, how a Japanese firm’s trade and foreign investment respond to each other in different industries; how the headquarter’s decision of investment expansion leads to different sourcing behavior of its affiliates. These are all important supporting materials that can guide my research in the next step.
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| Current Status of Research Progress |
Current Status of Research Progress
3: Progress in research has been slightly delayed.
Reason
The application for data from the statistics group of MEXI took much more time than I had expected. The procedure is tedious and requires a lot of documentation work. I wish the situation could be improved in the future.
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| Strategy for Future Research Activity |
In the future research, there are two directions that I plan to follow: 1) To start with the empirical verification concerning Japanese firms’ entry/exit choices into the European market. Following the signing of EU-Korea FTA, I will apply more sophisticated econometric method to estimate how much Japanese firms’ choice of FDI strategies has changed in response to this economic shock (FTA), while take into account the potential endogeneity issue. 2) I will expand the study to investigate how the enlargement of Japanese firms’ outward foreign direct investment will affect the structure of employment in the home country, as well as how they allocate the resources among different foreign affiliates.
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| Causes of Carryover |
物品購入と旅費は計画より少なかったので、次年度の同じ科目に回したいと思います。
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