Networked FDI and third-country intra-firm trade

International Review of Economics & Finance, 2023, vol. 83, issue C, 591-606

Abstract: Foreign direct investment (FDI) is networked. This is beyond vertical and horizontal FDIs. Affiliates locate across multiple countries and trade among them. This paper investigates the FDI networks, using the Japanese foreign affiliate data. First, we investigate location patterns and industry patterns of foreign affiliates and find the network structure of FDI. Then, third-country intra-firm trade is explored. The third-country sales and sourcing within the firm boundary (third-country intra-firm trade) is active, but only large firms tend to construct production networks and engage third-country intra-firm trade. Firm size (size of parent and affiliates and the number of affiliates) is crucial in understanding third-country intra-firm trade.

Keywords: Multinational firms; Networked FDI; Intra-firm trade; Sales and sourcing; Third-country (search for similar items in EconPapers)
JEL-codes: F12 F15 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1059056022002441
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Networked FDI and third-country intra-firm trade (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:83:y:2023:i:c:p:591-606

DOI: 10.1016/j.iref.2022.10.003

Access Statistics for this article

International Review of Economics & Finance is currently edited by H. Beladi and C. Chen

More articles in International Review of Economics & Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().