Do keiretsu really hinder FDI into Japanese manufacturing?

Kimino, Satomi, Driffield, Nigel and Saal, David (2012) Do keiretsu really hinder FDI into Japanese manufacturing? International Journal of the Economics of Business, 19 (3). pp. 377-395. ISSN 1357-1516

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This paper examines an issue that has received considerable comment but little analysis. It has often been argued that the presence of the keiretsu in Japan has been instrumental in deterring multinational firms from entering Japan, though evidence for this is patchy. We present some new analysis of this issue, thereby evaluating the effects of keiretsu on inward investment penetration in Japan. In contrast to previous work in this area, our results suggest that there is little relationship between inward FDI and keiretsu networks, once one controls for endogeneity and unobservable heterogeneity. The results illustrate some important interaction effects between keiretsu and other explanatory variables that explain differences in inward investment penetration.

Item Type: Article
Uncontrolled Keywords: Keiretsu, FDI, market structure
Subjects: N900 Others in Business and Administrative studies
Department: Faculties > Business and Law > Newcastle Business School
Depositing User: Helen Pattison
Date Deposited: 26 Nov 2012 11:42
Last Modified: 19 Nov 2019 09:52

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