| Budget Amount *help |
¥2,340,000 (Direct Cost: ¥1,800,000、Indirect Cost: ¥540,000)
Fiscal Year 2017: ¥650,000 (Direct Cost: ¥500,000、Indirect Cost: ¥150,000)
Fiscal Year 2016: ¥910,000 (Direct Cost: ¥700,000、Indirect Cost: ¥210,000)
Fiscal Year 2015: ¥780,000 (Direct Cost: ¥600,000、Indirect Cost: ¥180,000)
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| Outline of Final Research Achievements |
The entry of multinational firms will increase the average productivity level in developing countries through (i) the exit of inefficient local firms and (ii) spillover effects. Employing plant-level data in Indonesian manufacturing, we find that the entry of multinational firms induces the exit of low-productivity local firms from the market. In addition, this effect has greater impacts on regional productivity than spillover effects. Thus, the benefits of foreign direct investment will be maximized by facilitating the entry and exit of local firms.
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