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ASEAN Relations with Japan

In: Western Europe and South-East Asia

Author

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  • Kamal Salih

Abstract

There have been indications of a dramatic shift in economic relations between Japan and ASEAN in the 1980s, particularly in trade and investments, which seems to suggest some difficulty in the future for ASEAN as it tries to cope with adjustment pressures within the present world economic environment. While Japan remains the largest single export market for ASEAN as a whole, and its single major source of imports, in comparison with the United States and the European Community, in the 1980s that share has been declining. In the area of direct foreign investment, the high rate of investment growth in the 1970s has now in the 1980s begun to slacken as Japan redirects its investments to the advanced and newly industrialised countries. While the Japanese presence in ASEAN remains strong these signs of shifts in ASEAN-Japan economic relations do not augur well for the region’s future growth prospects unless it is replaced by improved links with other regions such as the US and the EC. In this regard, in the 1980s the US appears to loom as the new trade partner in the coming decade, if trading régimes remain open, while ASEAN-EC trade remains stagnant.

Suggested Citation

  • Kamal Salih, 1997. "ASEAN Relations with Japan," Palgrave Macmillan Books, in: Giuseppe Schiavone (ed.), Western Europe and South-East Asia, chapter 11, pages 145-158, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-10262-4_11
    DOI: 10.1007/978-1-349-10262-4_11
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