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Japanese Direct Investment and Economic Development Policy

Author

Listed:
  • Peter B. Doeringer

    (Boston University and Harvard University)

  • David G. Terkla

    (University of Massachusetts-Boston and Boston University)

Abstract

The increasing number of Japanese manufacturing plants locating in the United States presents new opportunities for state and local economic development policy. This article compares the location decisions of Japanese start-ups in manufacturing with counterpart domestic industry and concludes that there are substantial distinctions between Japanese and American firms. Except for a few industries, Japanese firms are not locating in those states that are most attractive to counterpart domestic industries, but are more often choosing average-to low-growth states. Interviews with a small sample of Japanese plants and industrial recruiters suggest that Japanese location decisions in many industries are based on a set of intangible considerations that differ from those that are important to domestic firms.

Suggested Citation

  • Peter B. Doeringer & David G. Terkla, 1992. "Japanese Direct Investment and Economic Development Policy," Economic Development Quarterly, , vol. 6(3), pages 255-272, August.
    • Handle: RePEc:sae:ecdequ:v:6:y:1992:i:3:p:255-272
    DOI: 10.1177/089124249200600303
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    Cited by:

    1. World Bank, 2007. "Brazil - São Paulo : Inputs for a Sustainable Competitive City Strategy, Volume 2. Background Report," World Bank Publications - Reports 7986, The World Bank Group.
    2. Kadokawa, Kazuo, 2011. "Applicability of Marshall’s Agglomeration Theory to Indus-trial Clustering in the Japanese Manufacturing Sector: An Exploratory Factor Analysis Approach," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 41(2), pages 1-18.
    3. Bill Luker Jr., 1998. "Foreign Investment in the Nonmetropolitan U.S. South and Midwest: A Case of Mimetic Location Behavior?," International Regional Science Review, , vol. 21(2), pages 163-184, August.
    4. Peter B. Doeringer & Christine Evans-Klock & David G. Terkla, 1998. "Hybrids or Hodgepodges? Workplace Practices of Japanese and Domestic Startups in the United States," ILR Review, Cornell University, ILR School, vol. 51(2), pages 171-186, January.

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