How do bidirectional migration and multinational business networks affect Japanese international royalty and license revenues?

Abstract

AbstractThis study uses bilateral data on Japan and OECD member countries to examine whether migration networks and multinational business networks promote intellectual property trade. The dynamic panel data analyses are distinct in that they comprehensively examine various network effects by integrating two branches of globalization topics: trade–migration relationships and trade–foreign direct investment (FDI) relationships. The results show that international royalty and license revenues are positively related with immigrants residing in Japan, but that networks created through Japanese emigrants, FDI inflows to Japan and Japanese direct investment abroad do not display significant relationships. The results imply that either some network effects do not exist, or that they do exist but are offset by other effects.