SSE/EFI Working Paper Series in Economics and Finance
No 371:
FDI in the Restructuring of the Japanese Economy
Magnus Blomström ()
, Denise Konan ()
and Robert E. Lipsey ()
Abstract: This paper examines how inward and outward foreign direct
investment (FDI) have influenced the restructuring of the Japanese economy
and can be expected to continue to do so in the future. We find that
outward investment has helped Japanese firms to sustain foreign market
shares and contributed to the restructuring of the Japanese economy away
from older industries. By shifting from exporting to affiliate production,
there has been a geographical reallocation of the activities of Japanese
firms, particularly those of multinational manufacturing firms. However,
Japanese outward FDI is still not very large relative to the Japanese
economy, despite the rapid growth since the mid-1980s, and there is still
scope for significant increase when compared with the levels of most other
OECD countries. Inward FDI will presumably have an even stronger impact on
the restructuring of the Japanese economy. Although the stock of inward
foreign direct investment is still very small, there are important changes
under way. Deregulation has opened up much of the industrial and service
sectors to foreign multinationals.
Keywords: Foreign Direct Investment; Multinational Corporations; Restructuring; Japan; (follow links to similar papers)
JEL-Codes: F23; (follow links to similar papers)
26 pages, April 4, 2000
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- This paper is published as:
-
Blomström, Magnus, Denise Konan and Robert E. Lipsey, (2001), 'FDI in the Restructuring of the Japanese Economy' in Blomström, Magnus, Byron Gagnes and Sumner La Croix (eds.) Japan's New Economy: Continuity and Change in the 21st Century, pages 245-263, Oxford University Press.
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