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This paper examines how the industry-level FDI-export sales relationship isaffected by the host nation’s status as an “export platform” (EP). Using JapaneseFDI and export sales data into 35 host countries during the period 1989-1998 for7 ISIC 2-digit industries, we find that the FDI-export sales relationship isindustry-specific and sensitive to the host’s export platform status. Withoutaccounting for the host’s EP status, we find a complementary relationship betweenFDI and export sales in some industries and a substitution betwen FDI andexport sales in others. However, accounting for the host’s EP status changes theFDI-export sales relationship in several industries, implying that the FDI-exportsales interaction is sensitive to the EP status of the FDI host countries. JEL Classifications: F14, F23


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FDI, Trade, Export Platforms, Manufacturing Exports, JapanI. IntroductionThis paper investigates how the industry-level foreign direct investment (FDI)-Export Platforms and the Industry-Specific FDI-Trade Relationship 645trade relationship is influe