Foreign Direct Investment and Keiretsu: Rethinking U.S. and Japanese Policy
AbstractThis paper focuses on two issues. First, a reexamination of the data on the level of foreign direct investment (FDI) in Japan suggests that foreign firms sell five to six times more in Japan than is commonly believed. Previous studies severely underestimated the stock of FDI in Japan due to poor data. Second, after finding that even after adjusting for various factors the level of FDI in Japan is still low, the paper explores explanations for this phenomenon. A second main conclusion is that government tax and financial policy continues to inhibit foreign takeovers through the promotion of stable shareholding.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 5612.
Date of creation: Jun 1996
Date of revision:
Publication status: published as David E. Weinstein. "Foreign Direct Investment and Keiretsu: Rethinking U.S. and Japanese Policy," in Robert C. Feenstra, editor, "The Effects of U.S. Trade Protection and Promotion Policies" University of Chicago Press (1997)
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Other versions of this item:
- David E. Weinstein, 1997. "Foreign Direct Investment and Keiretsu: Rethinking U.S. and Japanese Policy," NBER Chapters, in: The Effects of U.S. Trade Protection and Promotion Policies, pages 81-116 National Bureau of Economic Research, Inc.
- David E. Weinstein, 1996. "Foreign Direct Investment and Keiretsu: Rethinking Us and Japanese Policy," Harvard Institute of Economic Research Working Papers 1750, Harvard - Institute of Economic Research.
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