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Does Japanese direct foreign investment promote Japanese imports from developing countries?

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  • Takeuchi, Kenji

Abstract

Japanese direct foreign investment (DFI) in developing countries has been export market oriented. Exports were the dominant sales destinations for the affiliates in the primary industries. In manufacturing, although local markets were the dominant sales destinations of the Japanese affiliates, the share of exports increased from 26 percent in 1972 to 42 percent in 1986. For manufacturing as a whole, the share increased from 15 percent in 1980-83 to more than 20 percent in 1986. For many types of machinery production, Japanese affiliates in Asia seem to have become established as a base for exporting to the Japanese market through intrafirm trade. In some other manufacturing subsectors, Japanese affiliates have directed their sales efforts to other overseas destinations, gradually reducing the share going to the local market.

Suggested Citation

  • Takeuchi, Kenji, 1990. "Does Japanese direct foreign investment promote Japanese imports from developing countries?," Policy Research Working Paper Series 458, The World Bank.
    • Handle: RePEc:wbk:wbrwps:458
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    References listed on IDEAS

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    Cited by:

    1. Shigeru Otsubo, 1996. "Globalization : a new role for developing countries in an integrating world," Policy Research Working Paper Series 1628, The World Bank.
    2. Baumann, Renato & Carneiro, Francisco Galrão, 2002. "Behaviour of Brazilian export firms: implications for the Free Trade Area of the Americas," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.

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