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Japan’s Foreign Direct Investment and Trade in Asia

In: Winning in Asia, Japanese Style

Author

Listed:
  • Shujiro Urata

Abstract

Developing Asia has successfully attracted foreign direct investment (FDI) since the mid-1980s. FDI inflows to Asia increased sharply from $7 billion in 1986 to $94 billion in 1997.2 Although the recent financial crisis in Asia resulted in a drastic reduction in bank loans and portfolio investment, FDI inflows remained relatively strong, declining by only 7 percent from 1997 to 1998.3 Between 1997 and 1998, FDI inflows to five crisis-hit countries, Indonesia, South Korea, Malaysia, the Philippines, and Thailand, declined by only 2 percent. Compared to other forms of investment, FDI inflows remained relatively stable during that turbulent period. Indeed, FDI inflows to Asia rebounded to register a 10 percent increase in 1999.

Suggested Citation

  • Shujiro Urata, 2002. "Japan’s Foreign Direct Investment and Trade in Asia," Palgrave Macmillan Books, in: Vinod K. Aggarwal & Shujiro Urata (ed.), Winning in Asia, Japanese Style, chapter 0, pages 27-57, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-10926-2_2
    DOI: 10.1007/978-1-137-10926-2_2
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