Foreign direct investment with regard to the economic growth of the Japanese economy

Foreign direct investment presents an indivisible part of the global economy and a major catalyst to development. The paper stresses out the importance of FDI in boosting the growth of the nation's economy and is aimed at assessing the flow of inward FDI into Japan in the frame of the economic development of the country. Many studies reflected the superior managerial efficiency and productivity of foreign business companies operating in Japan and this is considered to be an asset of inward FDI into Japan. From the beginning of the reference period (with an exception of last two decades) the ratio of FDI on gross domestic product in Japan remained quite stable. This economy witnessed augmented FDI flows in the 1990s but current economic situation aggravated by the global financial and economic crisis differs significantly from the development in previous years. A fitted developmental series using a logarithmic polynomial indicate the described trend of FDI in Japan. Based on results of methods of regression and correlation analysis (including testing the statistical significance), the correlation is evident between FDI and gross domestic product in the monitored country and the existence of a growth impact of FDI can be thus accepted.