テクニカルレポート Do international flights promote FDI? : the role of face-to-face communication

Tanaka, Kiyoyasu  ,  田中, 清泰

5542016-02 , Institute of Developing Economies, JETRO
内容記述
Air transportation facilitates face-to-face interactions across borders for the spatial expansion of manufacturing production. I investigate the impact of international flights on FDI entry by Japanese firms. I find that FDI entry significantly increases with the weekly frequency of flights from Japan, and the positive impact increases with a proxy for an intensity of face-to-face communication between the parent firm and foreign affiliate. The results are robust to estimation methods, additional control variables, and definitions of face-to-face communication. Thus, the results suggest that flights encourage FDI entry through a reduction in face-to-face communication costs.
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http://ir.ide.go.jp/dspace/bitstream/2344/1500/1/ARRIDE_Discussion_No.554_tanaka.pdf

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