Regional disparities, firm heterogeneity, and the activity of Japanese manufacturing multinationals in India

IF 1.1 4区经济学 Q3 ECONOMICS Pacific Economic Review Pub Date : 2022-01-30 DOI:10.1111/1468-0106.12384

Hiroyuki Nishiyama, Azusa Fujimori, Takahiro Sato

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Abstract

This paper anatomizes the linkage between country/region characteristics and Japanese MNE activity in India from both theoretical and empirical sides. We construct a North-South firm-heterogeneity model with FDI and exchange rate. We use this model to make three contributions: First, we theoretically reveal how country characteristics affect the average sales of the firm in the host country. Secondly, we make clear the state-level characteristics on three main industrialized areas in India using the data from some valuable databases. Thirdly, we estimate determinant factors of average sales of each Japanese affiliate firms in India focusing on regional characteristics derived in the theoretical part using firm-level data. We also construct several proxy variables of determinant factors of average sales in state-level and put into estimated regression equation. This empirical analysis targets at the 1990s and 2000s. Over this period, India enjoyed steady economic growth and it can be linked with increase of FDI inflow and technological spillover from MNEs. We find out that some regional characteristics such as level of human-capital or transportation cost in each state and also exchange rate have a significant effect on average sales of each Japanese affiliate firms in India.

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区域差异、企业异质性和日本制造业跨国公司在印度的活动

本文从理论和实证两个方面剖析了国家/地区特征与日本在印度跨国公司活动之间的联系。我们构建了一个包含外国直接投资和汇率的南北企业异质性模型。我们使用这个模型做出了三个贡献：首先，我们从理论上揭示了国家特征如何影响企业在东道国的平均销售额。其次，我们利用一些有价值的数据库中的数据，明确了印度三个主要工业化地区的州级特征。第三，我们利用企业层面的数据，根据理论部分得出的区域特征，估计了每个日本子公司在印度平均销售额的决定因素。我们还构造了几个国家平均销售额决定因素的代理变量，并将其放入估计回归方程中。这项实证分析针对的是20世纪90年代和21世纪初。在此期间，印度经济稳步增长，这与外国直接投资流入的增加和跨国公司的技术溢出有关。我们发现，一些地区特征，如每个州的人力资本水平或运输成本，以及汇率，对每个日本附属公司在印度的平均销售额都有显著影响。

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来源期刊

Pacific Economic Review ECONOMICS-

CiteScore

2.70

自引率

0.00%

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期刊介绍： The Pacific Economic Review (PER) publishes high-quality articles in all areas of economics, both the theoretical and empirical, and welcomes in particular analyses of economic issues in the Asia-Pacific area. Published five times a year from 2007, the journal is of interest to academic, government and corporate economists. The Pacific Economic Review is the official publication of the Hong Kong Economic Association and has a strong editorial team and international board of editors. As a highly acclaimed journal, the Pacific Economic Review is a source of valuable information and insight. Contributors include Nobel Laureates and leading scholars from all over the world.