Research Activities

Research Projects

The Internationalization of Companies and Productivity (2018_2_20_001)


It is widely recognized that global production networks provide developing countries with better access to foreign markets and opportunities for the learning and transfer of tacit knowledge (Taglioni and Winkler, 2016). However, existing studies have revealed that a substantial portion of companies—the majority of them being less-productive small and medium-sized entities—are lagging behind in terms of participation in global production networks and that the “absorptive capacity” of indigenous companies in developing countries is vital for successful knowledge transfer (Girma, 2005). The purpose of this research project is twofold. First, we will examine the determinants of companies’ “absorptive capacity” by comparing management practices employed by local companies in international production networks with those employed by local companies in domestic production networks. Management practices represent multiple dimensions of corporate capability and are correlated to companies’ productivity (Bloom and Van Reenen 2010). Second, we will empirically study how participation in global production networks by a small fraction of companies can affect total factor productivity (TFP) at the company- and industry-levels through TFP changes in intensive and extensive margins.


April 2018 - March 2020

Members of the Research Project
[ Organizer ] Sato Hitoshi
[ Co-researcher ] Hashiguchi Yoshihiro
[ Co-researcher ] Tanaka Kiyoyasu
[ Co-researcher ] Asuyama Yoko (Faculty of Political Science and Economics, Waseda University, Research Fellow of Japan Society for the Promotion of Science)
  • IDE Research Bulletin
  • Discussion Paper