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Open Access 2022 | Open Access | Buch

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Deep Integration, Global Firms, and Technology Spillovers

verfasst von: Naoto Jinji, Xingyuan Zhang, Shoji Haruna

Verlag: Springer Nature Singapore

Buchreihe : Advances in Japanese Business and Economics

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Über dieses Buch

This open access book explores the impact of deep regional economic integration on spillovers of knowledge and technology across countries. Deep integration through signing deep regional trade agreements (DRTAs), which cover various policy areas in addition to tariff reductions, may or may not facilitate technology spillovers among their signatories. To understand the mechanism of the impact of deep integration on technology spillovers, this book starts by analyzing the behavior of global firms. Factors that affect global firms’ activities, such as export, foreign direct investment (FDI), offshore outsourcing, are examined. Micro data on Japanese firms are employed for the analysis. Then, the relationships between bilateral trade patterns and technology spillovers and between types of FDI and technology spillovers are investigated in detail. Patent citation data are used to measure technology spillovers. Finally, the impact of DRTAs on international technology spillovers is analyzed. This book is highly recommended to readers who are interested in the effects of deep regional integration, including academic scholars, policymakers, and graduate students.

Inhaltsverzeichnis

Frontmatter

Open Access

Chapter 1. Introduction and Overview
Abstract
The world economy was severely hit by the COVID-19 pandemic in 2020. It was estimated that the annual growth in the world’s real gross domestic product (GDP) in 2020 would be \(-3.3\)% (International Monetary Fund (IMF) 2021). World trade simultaneously contracted sharply.
Naoto Jinji, Xingyuan Zhang, Shoji Haruna

Open Access

Chapter 2. The Trend of Deep Regional Integration
Abstract
The last quarter century until around 2016 has witnessed “unprecedented trade integration” (Baier et al. 2019) in the world. There has been a rapid proliferation of regional trade agreements (RTAs). Figure 2.1 shows the evolution of RTAs in the world since the World War II.
Naoto Jinji, Xingyuan Zhang, Shoji Haruna

Open Access

Chapter 3. Which Aspect of Firm Performance is Important for the Choice of Globalization Mode?
Abstract
The relationship between firm performance and the choice of globalization mode, such as exports, foreign direct investment (FDI), and foreign outsourcing (FO), has been extensively investigated. For example, Melitz (2003) theoretically predicts a premium in productivity for firms engaging in exporting goods, relative to those supplying goods only to their domestic markets.
Naoto Jinji, Xingyuan Zhang, Shoji Haruna

Open Access

Chapter 4. Does Tobin’s q Matter for a Firm’s Choice of Globalization Mode?
Abstract
For the last two decades, sorting of firms by productivity into different modes of globalization has been well documented both theoretically and empirically in the trade literature. Melitz (2003) presents a model in which the most productive firms export goods to foreign markets, whereas less productive firms supply goods only to their domestic market.
Naoto Jinji, Xingyuan Zhang, Shoji Haruna

Open Access

Chapter 5. Trade Patterns and International Technology Spillovers: Theory and Evidence from Japanese and European Patent Citations
Abstract
International diffusion of knowledge is important to both the speed of the world’s technology frontier expansion and income convergence across countries. For example, Eaton and Kortum (1996) estimate innovation and technology diffusion among 19 Organization for Economic Co-operation and Development (OECD) countries to test predictions from a quality ladders model of endogenous growth with patenting.
Naoto Jinji, Xingyuan Zhang, Shoji Haruna

Open Access

Chapter 6. Vertical Versus Horizontal Foreign Direct Investment and Technology Spillovers
Abstract
Foreign direct investment (FDI) and international trade are two major channels of international diffusion of technological knowledge (Keller 2004,2010). While a number of empirical studies confirm significant spillover effects of knowledge through imports, the empirical findings on technology spillover effects through FDI are conflicting. In particular, there is relatively little evidence of spillovers of knowledge from inward FDI to the host country’s firms in the same industry. For example, Haskel et al. (2007) examine the situation in the United Kingdom and find significantly positive productivity spillovers from FDI.
Naoto Jinji, Xingyuan Zhang, Shoji Haruna

Open Access

Chapter 7. Do Deep Regional Trade Agreements Enhance International Technology Spillovers? Depth, Breadth, and Heterogeneity
Abstract
In Chap. 5, we examine the relationship between bilateral trade patterns and international technology spillovers. In Chap. 6, we analyze how horizontal and vertical foreign direct investment (FDI) of multinational enterprises (MNEs) affects technology spillovers between themselves and firms in host countries. Both chapters analyze the issues from theoretical and empirical points of view. Each chapter shows that international trade or FDI is an important channel of international technology spillovers, but the effect on them is heterogeneous, depending on the type of trade patterns or the structure of FDI. In both chapters we measure technology spillovers using patent citation data.
Naoto Jinji, Xingyuan Zhang, Shoji Haruna

Open Access

Chapter 8. Conclusion and Policy Implications
Abstract
After about a quarter century of countries having pursued deep regional integration through negotiating on deep regional trade agreements (RTAs), we observed a number of historical events that symbolize the curbing of the trend of globalization in 2016. On June 24, 2016, the people of the United Kingdom voted to leave the European Union (EU) in a referendum. On November 8, 2016, Mr. Donald Trump, who proposed the “America First” policy and a number of protectionist policies, such as the withdrawal from the Trans-Pacific Partnership Agreement and the construction of a substantial wall on the United States–Mexico border, during his presidential campaign, won the US presidential election.
Naoto Jinji, Xingyuan Zhang, Shoji Haruna
Backmatter
Metadaten
Titel
Deep Integration, Global Firms, and Technology Spillovers
verfasst von
Naoto Jinji
Xingyuan Zhang
Shoji Haruna
Copyright-Jahr
2022
Verlag
Springer Nature Singapore
Electronic ISBN
978-981-16-5210-3
Print ISBN
978-981-16-5209-7
DOI
https://doi.org/10.1007/978-981-16-5210-3

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