Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5087825 | Journal of Asian Economics | 2007 | 10 Pages |
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
Yukako Murakami,