-
Local Procurement and Firm Performance: Pure-local Inputs and Semi-local Inputs
- Journal of Southeast Asian Economies (JSEAE)
- ISEAS–Yusof Ishak Institute
- Volume 35, Number 1, April 2018
- pp. 101-110
- Article
- Additional Information
Abstract:
This paper examines the impact of local procurement on the performance of foreign-owned firms. Using a unique survey of Japanese overseas affiliates suitable to this end, the authors show that the increase of local procurement improves Japanese affiliates’ performance, but these positive effects are observed only in the case of procuring inputs from other Japanese affiliates in their host country, not in the case of procurement from indigenous firms.