SEMINAR SERIES
International Economics Seminar
Mitsuo Inada（Associate Professor, Miyazaki Municipal University）
- Date&Time:
- 2024.4.18 (Thu) 16:45-18:15
- Venue:
- Hybrid: Seminar Room 106 on 1F, Faculty of Law and Faculty of Economics, East Bldg., Yoshida Campus, Kyoto University + Online meeting room
- Language:
- English
- Contact:
- Naoto Jinji
(Title)
"The Impact of policy uncertainty on foreign direct investment in services: Evidence from affiliate-level dataand the role of regional trade agreements"
Abstract:
This study quantifies the role of regional trade agreements (RTAs) in reducing policy uncertainty (PU) on foreign direct investment (FDI) in services. PU about domestic rules and regulations discourages foreign investors from entry into service sectors. Service chapters in RTAs become a fresh ingredient in quantifying such PU in host countries by making commitments that are legally bound. Focusing on these commitments, this study evaluates how the activities of foreign affiliates of Japanese multinational enterprises are affected by the service chapters in RTAs with host country-sector-reservation level commitments such as market access (MA), national treatment (NT), and the most favored nation (MFN), signed by Japan over 1995-2018. We find that a reduction in PU regarding MFN encourages the establishment of new foreign affiliates. We also find that a reduction in PU regarding NT increases the ownership ratio of foreign affiliates. These results highlight a new important role of RTAs for the extensive and intensive margins of FDI in services.
Pre-registration is required to participate in this seminar. Please register yourself from the weblink below by Monday, April 15th at 9:00am (JST).