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Major Determinants and Potential Impacts of FDI on Japan’s Economic Growth

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  • Cristina Balgar

  • Andreea Dragoi

Abstract

As in the last years there has been observed a relative growth in the levels of inward FDI inflows in Japan, the aim of the present paper is to analyze the beneficial role of the Japanese inward investment for the country’s sustainable economic development. In our research, we will focus on revealing the main determinants that have contributed towards this increment in inward FDI, pointing out the comparative advantages of Japan over the other developed countries (national investmentfriendly policies, political stability, technological infrastructure, etc.). Furthermore, the analysis will underline the potential political measures that Japanese government may undertake in order to further increase the FDI inflows in the country, highlighting also the potential risks for the sustainable growth.

Suggested Citation

  • Cristina Balgar & Andreea Dragoi, 2014. "Major Determinants and Potential Impacts of FDI on Japan’s Economic Growth," Knowledge Horizons - Economics, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 6(3), pages 160-164, September.
    • Handle: RePEc:khe:journl:v:6:y:2014:i:3:p:160-164
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    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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