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A note on determinants of Japanese foreign direct investment in Southeast Asia, 2008–2015

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  • Kubo, Akihiro

Abstract

The appreciation of the Japanese yen does not explain why Japanese firms have doubled foreign direct investment (FDI) in Southeast Asia since the late 2000s. This study investigates the effects of exchange rates and other factors on new Japanese FDI in Indonesia, Malaysia, the Philippines, and Thailand, using industry-specific panel data from 2008 to 2015. It is found that new FDI was more strongly correlated with the expectation of consumption demand than with exchange rate movements for Indonesia and Thailand, while the agglomeration of Japanese firms predominantly affected new FDI in Malaysia and the Philippines.

Suggested Citation

  • Kubo, Akihiro, 2019. "A note on determinants of Japanese foreign direct investment in Southeast Asia, 2008–2015," Economic Analysis and Policy, Elsevier, vol. 62(C), pages 192-196.
    • Handle: RePEc:eee:ecanpo:v:62:y:2019:i:c:p:192-196
    DOI: 10.1016/j.eap.2019.03.003
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    References listed on IDEAS

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    Cited by:

    1. Anh T. N. Nguyen & Andrzej Cieślik, 2021. "Determinants of foreign direct investment from Europe to Asia," The World Economy, Wiley Blackwell, vol. 44(6), pages 1842-1858, June.

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    More about this item

    Keywords

    Foreign direct investment; Currency appreciation; Industry-specific panel data; Southeast Asia;
    All these keywords.

    JEL classification:

    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance

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