This paper develops a micro-simulation framework for multinational entry and sales activities across countries. The model is based on Eaton, Kortum, and Kramarzs (2010) quantitative trade model adapted towards multinational production. Using micro data on Japanese manufacturing firms, we...

In this paper, geographical spillover potential is modeled and empirically examined using factory-level data from Japans Census of Manufactures. First, the efficiency of each factory is estimated using a non-parametric data envelopment analysis (DEA) model for each industry. Second, the...