Advanced Search
MyIDEAS: Login to save this article or follow this journal

Foreign direct investment and trade in Japan: An empirical analysis based on the Establishment and Enterprise Census for 1996

Contents:

Author Info

  • Ito, Keiko
  • Fukao, Kyoji

Abstract

Using micro-data of the Establishment and Enterprise Census, we compile new statistics on the employment of Japanese affiliates of foreign firms at the 3-digit industry level for the year 1996. We find that the existing official statistics severely underestimate inward FDI. Nevertheless, the level of inward FDI in Japan is much lower than that in the United States. The results of our regression analyses imply that by eliminating the restrictions on inward FDI and reducing government activities, Japan can increase inward FDI in the service sector. Our results also suggest that the keiretsu do not act as an impediment to inward FDI.

(This abstract was borrowed from another version of this item.)

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.sciencedirect.com/science/article/B6WMC-4CSG3WV-1/2/222a06459cf492f01746b1dbfb8e1d7d
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Elsevier in its journal Journal of the Japanese and International Economies.

Volume (Year): 19 (2005)
Issue (Month): 3 (September)
Pages: 414-455

as in new window
Handle: RePEc:eee:jjieco:v:19:y:2005:i:3:p:414-455

Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/622903

Related research

Keywords:

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Kogut, Bruce & Chang, Sea Jin, 1991. "Technological Capabilities and Japanese Foreign Direct Investment in the United States," The Review of Economics and Statistics, MIT Press, MIT Press, vol. 73(3), pages 401-13, August.
  2. S. Lael Brainard, 1993. "A Simple Theory of Multinational Corporations and Trade with a Trade-Off Between Proximity and Concentration," NBER Working Papers 4269, National Bureau of Economic Research, Inc.
  3. Kyoji Fukao & Keiko Ito, 2003. "Foreign Direct Investment and Services Trade: The Case of Japan," NBER Chapters, National Bureau of Economic Research, Inc, in: Trade in Services in the Asia Pacific Region, NBER East Asia Seminar on Economics (EASE), Volume 11, pages 429-480 National Bureau of Economic Research, Inc.
  4. David E. Weinstein, 1997. "Foreign Direct Investment and Keiretsu: Rethinking U.S. and Japanese Policy," NBER Chapters, National Bureau of Economic Research, Inc, in: The Effects of U.S. Trade Protection and Promotion Policies, pages 81-116 National Bureau of Economic Research, Inc.
  5. David L. Carr & James R. Markusen & Keith E. Maskus, 2001. "Estimating the Knowledge-Capital Model of the Multinational Enterprise," American Economic Review, American Economic Association, American Economic Association, vol. 91(3), pages 693-708, June.
  6. Jonathan Eaton & Akilo Tamura, 1994. "Bilateralism and Regionalism in Japanese and U.S. Trade and Direct Foreign Investment Patterns," Boston University - Institute for Economic Development, Boston University, Institute for Economic Development 48, Boston University, Institute for Economic Development.
  7. Paprzycki,Ralph & Fukao,Kyoji, 2008. "Foreign Direct Investment in Japan," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521873680.
  8. Saxonhouse, G.R., 1993. "What Does Japanese Trade Structure Tell Us about Japanese Trade Policy?," Working Papers, Research Seminar in International Economics, University of Michigan 337, Research Seminar in International Economics, University of Michigan.
  9. Grubert, Harry & Mutti, John, 1991. "Taxes, Tariffs and Transfer Pricing in Multinational Corporate Decision Making," The Review of Economics and Statistics, MIT Press, MIT Press, vol. 73(2), pages 285-93, May.
  10. Robert Z. Lawrence, 1993. "Japan?s Low Levels of Inward Investment: The Role of Inhibitions on Acquisitions," NBER Chapters, National Bureau of Economic Research, Inc, in: Foreign Direct Investment, pages 85-112 National Bureau of Economic Research, Inc.
  11. Fukunari Kimura & Robert E. Baldwin, 1996. "Application of Nationality-Adjusted Net Sales and Value Added Framework: The Case of Japan," NBER Working Papers 5670, National Bureau of Economic Research, Inc.
  12. repec:fth:michin:337 is not listed on IDEAS
  13. Pugel, Thomas A & Kragas, Erik S & Kimura, Yui, 1996. "Further Evidence on Japanese Direct Investment in U.S. Manufacturing," The Review of Economics and Statistics, MIT Press, MIT Press, vol. 78(2), pages 208-13, May.
  14. Peter A. Petri, 1991. "Market Structure, Comparative Advantage, and Japanese Trade under the Strong Yen," NBER Chapters, National Bureau of Economic Research, Inc, in: Trade with Japan: Has the Door Opened Wider?, pages 51-84 National Bureau of Economic Research, Inc.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Kyoji Fukao & Keiko Ito & Hyeog Ug Kwon, 2004. "Do Out-In M&As Bring Higher TFP to Japan?: An Empirical Analysis Based on Micro-data on Japanese Manufacturing Firms," Hi-Stat Discussion Paper Series, Institute of Economic Research, Hitotsubashi University d04-41, Institute of Economic Research, Hitotsubashi University.
  2. Kyoji Fukao & Keikok Ito & Hyeg Ug Kwon & Miho Takizawa, 2006. "Cross-Border Acquisitons and Target Firms' Performance: Evidence from Japanese Firm-Level Data," Hi-Stat Discussion Paper Series, Institute of Economic Research, Hitotsubashi University d06-174, Institute of Economic Research, Hitotsubashi University.
  3. WAKASUGI Ryuhei & TODO Yasuyuki & SATO Hitoshi & NISHIOKA Shuichiro & MATSUURA Toshiyuki & ITO Banri & TANAKA Ayumu, 2008. "The Internationalization of Japanese Firms: New Findings Based on Firm-Level Data," Discussion papers, Research Institute of Economy, Trade and Industry (RIETI) 08036, Research Institute of Economy, Trade and Industry (RIETI).
  4. 深尾, 京司, 2002. "黒字大国終焉論の誤解," Discussion Paper, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University 97, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
  5. Kyoji Fukao, 2004. "Do Foreign Firms Bring Greater Total Factor Productivity to Japan?," Discussion papers, Research Institute of Economy, Trade and Industry (RIETI) 04014, Research Institute of Economy, Trade and Industry (RIETI).
  6. ITO Keiko, 2011. "Entry of Foreign Multinational Firms and Productivity Growth of Domestic Firms: The case of Japanese firms," Discussion papers, Research Institute of Economy, Trade and Industry (RIETI) 11063, Research Institute of Economy, Trade and Industry (RIETI).
  7. Serge REY & Jacques JAUSSAUD, 2012. "FDI to Japan and Trade Flows: A Comparison of BRICs, Asian Tigers and Developed Countries," Working Papers, CATT - UPPA - Université de Pau et des Pays de l'Adour 2011-2012_6, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Mar 2012.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:eee:jjieco:v:19:y:2005:i:3:p:414-455. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.