Determinants of Japans foreign direct investment: An industry and country panel study, 1984-1998
Date
2004
Authors
Farrell, Roger
Gaston, Noel
Sturm, Jan-Egbert
Journal Title
Journal ISSN
Volume Title
Publisher
Academic Press
Abstract
From the time of the Plaza Accord until the late-1990s, Japanese foreign direct investment (JFDI) successively rose dramatically, fell sharply and recovered slowly. Using panel data for 8 manufacturing industries and 15 countries, we find that JFDI was primarily affected by domestic macroeconomic conditions and the increasing use of antidumping investigations by host countries. In addition, we find that the precise relationship between exports and JFDI depends on the industry and country in question. Finally, there is a robust positive relationship between imports and JFDI. While this may result from stable intra-keiretsu relationships, it may also be, in part, that JFDI represents the outsourcing of relatively low technology production processes.
Description
Keywords
Keywords: Country and industry panel estimates; Foreign direct investment; Japan
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Source
Journal of the Japanese and International Economies
Type
Journal article