Haruka Takayama

Assistant Professor

University at Albany, State University of New York

Contact: htakayama[at]albany[dot]edu

Publication

- Abstract: Intensifying geopolitical turmoil has revealed the fragility of international production networks. This paper demonstrates how multinational firms are redefining their organizational boundaries by examining cross-border mergers and acquisitions (M&A) as a lever for restructuring global production networks in turbulent times. Combining comprehensive data from cross-border M&A transactions and US input-output tables, the paper provides robust evidence that rising economic policy uncertainty compels firms to deepen vertical integration by acquiring targets situated at more distant stages of the value chain. Regression estimates suggest that heightened disruption risk is significantly associated with multinational firm integration patterns.

- Abstract: When a firm invests abroad, it can either establish a new facility through greenfield foreign direct investment (GFDI) or purchase a local firm through cross-border mergers and acquisitions (M&A). This paper studies how intangible capital shapes this entry-mode choice and its consequences for host countries. I develop a general equilibrium search model in which foreign projects choose between M&A and GFDI. The model predicts that projects with higher levels of intangible capital are more likely to enter through GFDI. I test this prediction using a novel US project-level dataset and find empirical support. Consistent with the model, M&A is also more likely in host-country–industry markets with thicker pools of local firms and richer local intangible assets. I then use the calibrated model to assess whether the decentralized FDI composition is efficient for the host country. Advanced economies lie close to the efficient margin, whereas non-advanced economies receive too little M&A because search frictions are high. A balanced-budget policy that subsidizes completed M&A raises host welfare, but the gains are limited by target scarcity.

- Abstract: Many countries seek to attract foreign travelers by improving air connectivity. How do direct flight connections affect international visitors' spending? We address this question using a novel dataset on card payments made by Chinese travelers via point-of-sale (POS) terminals. Our identification strategy exploits overseas improvements in air transportation capacityーarising from infrastructure developments, policy changes, and historical eventsーwhich we treat as exogenous supply shocks to flight frequency. Our IV estimates indicate that a 1% increase in the weekly frequency of direct flights leads to a 1.2% increase in cross-border card transaction value. While improving air connectivity promotes international travel, we find that negative shocks to consumer preferences for destination countries, such as boycotts, diminish the positive impact of air connectivity.

- Abstract: There is growing attention to the need for firms to ensure that their suppliers meet production standards (i.e., responsible sourcing). This practice is particularly prevalent in the apparel industry, as buyers—especially multinationals with well-known brands—often require their suppliers to comply with stringent environmental standards. We study how trading with global fashion brands affects the environmental performance of their suppliers in Bangladesh. Using a novel dataset that combines custom data with river water quality data, we find that an increase in the number of exporters to brand multinationals improves the river water quality surrounding these exporters. Our findings highlight the crucial role multinational buyers play in mitigating industrial pollution, particularly in developing countries with weaker regulatory enforcement.

Abstract: Multinational firms are strategically changing their organizations in response to escalating geopolitical risks. This paper investigates the role of mergers and acquisitions (M&A) in restructuring firm organizations in a time of uncertainty. Our initial step quantifies the relative distance between acquiring and target firms within a production value chain. Regression analysis shows that heightened economic policy uncertainty correlates with a greater likelihood of cross-border acquisitions occurring at more distant production stages. We present a conceptual model grounded in the hypothesis that firms integrate farther along global value chains during times of uncertainty. The implications of our model align consistently with the empirical findings, highlighting the trade-off between synergies and exposure to unexpected shocks in vertical integration decisions along the global production network.

"Private Equity in the Global Market for Corporate Control" (with Stephen Yeaple)
"Multinationals, Greenfield Investment, and the Environment" (with Rahul Gupta, Xian Jiang, and Mahdi Shams)
"Beyond Prices: Trade Liberalization and Children's Height" (with Yoko Ibuka and Kozo Kiyota)
"The Distribution of Windfall Revenues: Evidence from School Districts and FDI" (with Brett Fischer)

“On the Use of AIS Data For Economic Research in the Field of International Trade”
- RIETI Policy Discussion Paper Series 22-P-011 with Eiichi Tomiura (written in Japanese)
"An International Comparison of FDI Entry Modes"
- RIETI Policy Discussion Paper Series 20-P-017 with Yukiko Saito (written in Japanese)
"FDI and the Local Labor Market: Japanese Automobile Plant Openings in the 1980s"
- Abstract: Using US census data, I investigate how much Japanese automobile firms' investments contributed to local wage increases over the 1980s. My difference-in-differences estimation shows that the effect is not significant with a whole sample, but different by race. In particular, Black workers experienced a 9.3 percent wage decrease in areas where a Japanese assembly plant opened, and I consistently observed the negative effects in regressions with other specifications. My analysis also suggests a regional difference in the wage increase, and auto workers in the West experienced a larger wage increase than workers in the other regions.

Instructor (University at Albany, SUNY)

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