2017 Fiscal Year Final Research Report
Entry and exit of multinational and local firms and its impact on the host economy
Project/Area Number |
15K17042
|
Research Category |
Grant-in-Aid for Young Scientists (B)
|
Allocation Type | Multi-year Fund |
Research Field |
Economic policy
|
Research Institution | Hokkaido University |
Principal Investigator |
Saito Hisamitsu 北海道大学, 公共政策学連携研究部, 准教授 (30540984)
|
Project Period (FY) |
2015-04-01 – 2018-03-31
|
Keywords | 生産性 / 多国籍企業 / 参入・退出 |
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.
|
Free Research Field |
都市経済学
|