Purpose – This research examines the effect of a foreign subsidiary on the productivity growth of a Two-way trading manufacturing firm in Korea. We explore firms engaged in both trade and FDI simultaneously to verify whether participation in GVC as a broad concept is an efficient...

We exploit the 2011 Japanese natural disaster to investigate the effects of deep disruptions of Japanese parent firms’ production activities on South Korean subsidiaries’ operations. Using a simple DiD specification applied to firms from the KNSO panel database we detail the features of a...