This paper investigates systematic linkages among "reverse imports", foreign direct investment, and exchange rates. We have in mind the competition in the Japanese market of a Japanese multinational firm and a Chinese domestic firm. Products are differentiated based on Japanese consumers' brand...

This paper provides an extensive analysis on the Sino-Japanese trade and Japanese direct investment in China. It investigates the trend, the growth and the structure change of the bilateral trade, and examines the scale, the major characteristics of Japanese FDI in China, as well as its...

This paper models the production allocation choices of a multinational enterprise (MNE) in a three-country framework -- a northern country and two southern countries. The products made in the southern countries are of lower quality, and have higher substitutability than those between the south...

This paper proposes methods to incorporate firm heterogeneity in the standard IO-table based approach to portray the domestic segment of global value chains in a country. Using Chinese firm census data for both manufacturing and service sectors, along with constrained optimization techniques, we...