The Role of Japanese Foreign Direct Investment

  • Thomas Andersson

Abstract

Business operations have generally become more internationalized in recent decades. There has also been a widening of the national origin of so-called multinational enterprises, which own and control productive assets in more than one country. Such firms used to emanate almost entirely from Western Europe and North America. The dominance of westerners is now being challenged particularly by the rise of Japanese multinationals, which rapidly expand their activities in all major markets. Their efforts are not reciprocated by western firms, and the Japanese home market remains relatively untouched by foreign-based corporations. In fact, the Japanese are becoming dominant in East Asia as a whole, which is the fastest growing region in the world.

Keywords

Foreign Direct Investment Host Country Direct Investment Foreign Firm Japanese Firm 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Abbeglen, J.C. and G. Stalk (1985), Kaisha The Japanese Corporation, New York: Basic Books.Google Scholar
  2. Andersson, T. (1992a), “Approaches to Partnerships Causing Asymmetries between Japan and the West”, Working Paper 320, Stockholm: Industrial Institute for Economic and Social Research (IUI).Google Scholar
  3. Andersson, T. (1992b), “Investment Asymmetry between Europe and Japan”, mimeo, Bank of Japan.Google Scholar
  4. Andersson, T. and S. Burenstam Linder (1991), Europe and the East Asian Agenda, European Policy Unit at the European University Institute, Florence.Google Scholar
  5. Aoki, M. (1988), Information, Incentives and Bargaining in the Japanese Economy, Cambridge: Cambridge University Press.CrossRefGoogle Scholar
  6. Aoki, M. (1991), “The Japanese Firm as a System: Survey and Research Agenda”, paper presented at a conference on Japan in a Global Economy, September 5–6, Stockholm: Stockholm School of Economics.Google Scholar
  7. Asanuma, B. (1988), “Japanese-Supplier Relationships in International Perspective: The Automobile Case”, Working Paper no. 8, Kyoto: Kyoto University.Google Scholar
  8. Asanuma, B. (1989), “ Manufacturing-Supplier Relationships in Japan and the Concept of Relation-Specific Skill”, Journal of Japanese and International Economies, 3, pp. 1–30.CrossRefGoogle Scholar
  9. Asian Development Bank (1990), Asian Development Outlook,Manila.Google Scholar
  10. Balassa, B. (1991), Economic Policies in the Pacific Area Developing Countries, London: Macmillan.Google Scholar
  11. Caves, R. (1982), Multinational Enterprise and Economic Analysis, Cambridge: Cambridge University Press.Google Scholar
  12. Clark, K.B., W. B. Chew and T. Fujimoto (1987), “Product Development in the World Auto Industry”, Brookings Papers on Economic Activity, pp. 729–771.Google Scholar
  13. Coulbeck, N.S. (1984), The Multinational Banking Industry, London: Croom Helm.Google Scholar
  14. Dufey, G. (1990), “The Role of Japanese Financial Institutions Abroad”, in C.H.E. Goodhart, and G. Sutija (ed.), Japanese Financial Growth, London: Macmillan.Google Scholar
  15. Dunning, J.H. (1977), “Trade, Location of Economic Activity and the MNE: A Search for an Eclectic Approach”; in B. Ohlin, P.-O. Hesselborn and P.M. Wijkman, (eds.), The International Allocation of Economic Activity: Proceedings of a Nobel Symposium Held at Stockholm, 395–418, London: Macmillan.Google Scholar
  16. Encarnation, D. (1992), Rivals Beyond Trade: America versus Japan in Global Competition, Cornell: Cornell University Press.Google Scholar
  17. Feldman, R.A. (1990), “The Future of Japanese Banking”, in C.H.E. Goodhart, and G. Sutija, (eds.), Japanese Financial Growth, London: Macmillan.Google Scholar
  18. Fredriksson, T. (1992), “Policies Towards Small and Medium Enterprises in Japan and Sweden”, EFI Research Report, Stockholm: Stockholm School of Economics.Google Scholar
  19. Freeman, C. (1987), Technology Policy and Economic Performance-Lesson from Japan, London and New York: Printer Publishers.Google Scholar
  20. Hamel, G., Y. Doz and C. K., Prahald, (1986), “Strategic Partnerships: Success or Surrender?”, Working Paper Series 24, Center for Business Strategy, London Business School.Google Scholar
  21. Imai, K (1990), “Japan’s Business Groups and the Structural Impediments Initiative”, in K. Yamamura (ed.), Japan’s Economic Structure: Should it Change?, Washington: Society for Japanese Studies.Google Scholar
  22. Imai, K. (1991), “Globalization and Cross-border Networks of Japanese Firms”, in T. Andersson, (ed.), Japan: A European Perspective, London: Macmillan.Google Scholar
  23. International Monetaty Fund (1992), International Financial Studies,Washington.Google Scholar
  24. Itoh, H. (1990), “Coalitions, Incentives and Risk Sharing”, mimeo, Kyoto: Kyoto Univercity.Google Scholar
  25. ITTO (1991), “International Tropical Timber Organization, Pre-project Report on Incentives in Producer and Consumer Countries to Promote Sustainable Development of Tropical Forests”. Prepared by the Oxford Forestry Institute in Association with the Timber Research and Development Association, Oxford.Google Scholar
  26. JETRO (1990), “Current Situation of Business Operations of Japanese Manufacturing Enterprises in Europe”, the 6th Survey Report.Google Scholar
  27. Kojima, K. and T. Ozawa, (1984), “Micro-and Macro-economic models of direct foreign investment: Toward a Synthesis”, Hitotsubashi Journal of Economics, 25, 1–20.Google Scholar
  28. Krugman, P. (1984), “Import Protection as Export Promotion: International Competition in the Presence of Oligopolies and Economics of Scale” In H. Kierzkowski, (ed.), Monopolistic Competition and International Trade, Oxford: Clarendon Press, 180–193.Google Scholar
  29. Krugman, P. (1987), “ Is the Japan Problem over?” in Sato R., and P. Wachtel, (eds.), Trade Frictions and Economic Policy, Problems and Prospects for Japan and the United States, Cambridge: Cambridge University Press.Google Scholar
  30. Kumazaki, M. (1992), “Lessons from the Deforestation of Southeast Asia’s Forests”, presented at the 2nd National Congress on Biodiversity, Instituto Florestal, Sao Paulo.Google Scholar
  31. Lawrence, R.Z. (1987), “Imports in Japan: Closed Markets or Minds?”, Brookings Papers in Economic Activity, 2.Google Scholar
  32. Messerlin, P. A. (1989), “The EC Antidumping Regulations: A First Economic Appraisal, 1980–85”, Weltwirtschaftliches Archiv, 125, 563–587.CrossRefGoogle Scholar
  33. Ministry of Finance (1988–1991), Kokusai Kinyu Kyoku Nenpo, Tokyo.Google Scholar
  34. Ministry of International Trade and Industry (MITI) (1992), unofficial data.Google Scholar
  35. Ministry of International Trade and Industry (MITI) (1991), Successful Foreign-Affiliated Enterprises in Japan, Vol. 2, International Affairs Division, Tokyo.Google Scholar
  36. Naya, S. (1990), “Direct Foreign Investment and Trade in East and Southeast Asia”, in R. W. Jones and A.O. Krueger (eds.), The Political Economy of International Trade, Cambridge: Basil Blackwell, 288–312.Google Scholar
  37. Nester, W.D. (1990), Japan’s Growing Power over East Asia and the World Economy: Ends and Means, London: Macmillan.Google Scholar
  38. Odaka, K. (1990), “Sokusenryoku tositeno Chuto-saiyosha; Shokunou no Ippan-tsuyousei wo megutte”, mimeo,Tokyo: Hitotsubashi University.Google Scholar
  39. OECD (1992), Main Economic Indicators,Paris.Google Scholar
  40. Okita, S. (1990), Approaching the 21st Century: Japan’s Role, Tokyo: The Japan Time.Google Scholar
  41. Ozawa, T. (1979), Multinational ism, Japanese Style, Princeton: Princeton University Press.Google Scholar
  42. Saxonhouse, G., and R.M. Stern (1989), “An Analytical Survey of Formal and Informal Barriers to International Trade and Investment in the United States, Canada and Japan” in R.M. Stern (ed.), Trade and Investment Relations among the US, Canada and Japan, Chicago: University of Chicago Press.Google Scholar
  43. Shigehara, K. (1990), “Comment on the Future of Japanese Financial Development”, in C.H.E. Goodhart, and G. Sutija (eds.), Japanese Financial Growth, London: Macmillan.Google Scholar
  44. Shinohara, M. (1972), Growth and Cycles in the Japanese Economy, Institute of Economic Research, Tokyo: Hitotsubashi University.Google Scholar
  45. Shinohara, M. (1989), “High Yen, Overseas Direct Investment, and the Industrial Adjustments in the Asia-Pacific Area”, in W. Klenner (ed.), Trends of Economic Development in East Asia, Berlin: Springer-Verlag.Google Scholar
  46. Trevor, M. (1989), “Japanese Managers and British Staff, A Comparison of Relations and Expectations in Blue-Collar and White-Collar Firms”, in K. Shibagaki and A. Tetsuo, Japanese and European Management. Their International Adaptability, Tokyo: Tokyo University Press, 164–181.Google Scholar
  47. United Nations Centre on Transnational Corporations (UNCTC) (1983), Transnational Corporations in World Development, Third Survey,New York.Google Scholar
  48. U.S. Department of Commerce (1987), Survey of Current Business, March, Washington.Google Scholar
  49. U.S. Department of Commerce (1992), Survey of Current Business, March, Washington.Google Scholar
  50. Vernon, R. (1966), “International Investment and International Trade in the Product Cycle”, Quarterly Journal of Economics, 190–207.Google Scholar
  51. Wakasugi, R. (1992), “Why are Japanese Firms so Innovative in Engineering Technology”, Research Policy 21, 1–12.CrossRefGoogle Scholar
  52. World Bank (1990), World Development Report,New York.Google Scholar
  53. Yasui, D.I., B. von der Osten, and S.-J. Park, (1989), Japanisches Management in der Bundesrepublik Deutschland. Ergebnisbericht der zweiten Enquete-Untersuchung, Berlin.Google Scholar

Copyright information

© Springer-Verlag Berlin · Heidelberg 1993

Authors and Affiliations

  • Thomas Andersson

There are no affiliations available

Personalised recommendations