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The determinants of offshore production by Multinational Corporations (MNCs) : a comparison of Japanese and US MNCs
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Abstract
This study employs confidential affiliate-level panel data to improve measures of foreign
affiliate activities of Japanese firms in manufacturing sectors. Combining existing data on
U.S. MNCs with the Japanese data, we illustrate the pattern and determinant of their foreign
affiliate sales by destination market across countries and industries for the period 1989-2005.
Among our results, Japanese and U.S. MNCs are similar in the substantial growth of their
foreign affiliate sales and the importance of sales to local markets. However, Japanese MNCs
are distinctive from U.S. MNCs in that Japanese affiliate sales in Asia were prominently
higher in host markets with lower educational attainment.Japan, United States, International business enterprises, Industrial management, Multinational firm, FDI, U.S., Skill endowment