Production Offshoring and Investment by Japanese Firms
Electronic Access:
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Summary:
We trace Japanese corporate investment across different types of firms over the past decades and estimate the main determinants of investment. We find that there are differences in investment behavior between firms expanding abroad and those operating mainly in domestic markets. On the back of a trend increase in production offshoring, investment by large companies, especially those in the transportation sector, is more positively associated with cash flow while responding less to Q ratio. These findings are consistent with the subdued recovery of private investment in recent years despite booming stock markets and the large build up of cash holdings by Japanese corporates.
Series:
Working Paper No. 2015/183
Subject:
Corporate investment Currencies Economic sectors Financial crises Global financial crisis of 2008-2009 Manufacturing Money National accounts Private investment
English
Publication Date:
July 30, 2015
ISBN/ISSN:
9781513557298/1018-5941
Stock No:
WPIEA2015183
Pages:
20
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