Article ID Journal Published Year Pages File Type
5087825 Journal of Asian Economics 2007 10 Pages PDF
Abstract
This paper shows that in the short run an increase in foreign firms' industry share lowers the total factor productivity (TFP) growth of Japanese firms as a result of the decrease in market power. However, in the long run, the entry of foreign-owned firms has a positive effect on the productivity of local firms as a result of technology spillovers. In addition, the results suggest that foreign firms exert competitive pressure that forces Japanese firms with a high level of technological capabilities raise their productivity growth.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Authors
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