Abstract
The influence of foreign direct investment (FDI) on the output and productivity of software companies was analysed using corporate financial data of Japanese software companies. The analysis was done on the basis that FDI improves productivity through more effective development, and increases output through market expansion. To solve the endogeneity of self-selection, whereby enterprises with higher productivity and output are more likely to engage in FDI to increase their productivity and output, propensity score analysis was used. As a result, it was recognised that FDI significantly improved output growth rate, but did not necessarily improve productivity growth rate. This result likely derives from the difficulties faced by Japanese software companies in developing and managing foreign country branches.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
