Comments by Deborah Swenson, on Impact of Extensive and Intensive Margins of Foreign Direct Investment on Domestic Corporate Performance: Evidence from Japanese Automobile Parts Suppliers

Deborah Swenson: Globalization fears have become increasingly prominent in the political debates of many countries. As a result, negotiation efforts focused on further trade and investment liberalization have slowed as popular skepticism about the benefits of international integration have grown. One staple that underpins popular anti-globalization concerns is the belief that overseas expansion by local firms damages local output and employment. Indeed, it appears more than logically plausible that economic activity at home will be displaced as multinational firms increase their offshore operations. In this context, Matsuura is to be commended for studying the effects of foreign direct investment (FDI) on domestic performance, since his project seeks to provide direct evidence on the Japanese output and employment effects that have followed from the international expansion efforts of Japanese firms. This work is important, because it provides evidence on matters of popular concern, as empirical work of this type provide a...