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Foreign Direct Investment and the Flying Geese Model: Japanese Electronics Firms in Asia-Pacific

Author

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  • David W Edgington

    (Department of Geography, University of British Columbia, Vancouver, BC V6T 1Z2, Canada)

  • Roger Hayter

    (Department of Geography, Simon Fraser University, Burnaby, BC V5A 1S6, Canada)

Abstract

This paper is a critical examination of the ‘flying geese’ and ‘billiard ball’ models of foreign direct investment (FDI) and their ability to explain the spatial expansion of Japanese electronics multinationals (MNCs) in Asia-Pacific countries from 1985 to 1996. Data on Japanese FDI are analyzed in this region at the aggregate, sectoral, and firm level. The paper commences with a review of the flying geese model, especially that version which interprets Japanese FDI as a catalyst for Asian development, and the billiard ball metaphor which suggests a mechanism for host countries to ‘catch up’ with Japan. The authors then turn to an analysis of Japanese FDI in Asia-Pacific together with employment data for fourteen major firms. This allows an evaluation of the two models in terms of recent geographical patterns of investment and employment growth by electronics MNCs. A special case study of Matsushita Electric Industrial Co. Ltd (MEI) helps flesh out the evolving geography of Japanese electronics firms in Asia-Pacific. Although the results support the overall patterns suggested by the two models, the authors argue that metaphors and analogies such as flying geese and billiard balls should not be used casually and as a substitute for analysis.

Suggested Citation

  • David W Edgington & Roger Hayter, 2000. "Foreign Direct Investment and the Flying Geese Model: Japanese Electronics Firms in Asia-Pacific," Environment and Planning A, , vol. 32(2), pages 281-304, February.
    • Handle: RePEc:sae:envira:v:32:y:2000:i:2:p:281-304
    DOI: 10.1068/a31171
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    References listed on IDEAS

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    Cited by:

    1. David W Edgington & Roger Hayter, 2012. "New Relationships between Japanese and Taiwanese Electronics Firms," Environment and Planning A, , vol. 44(1), pages 68-88, January.
    2. Oleg Badunenko & Diego Romero‐Ávila, 2013. "Financial Development And The Sources Of Growth And Convergence," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 54(2), pages 629-663, May.
    3. Peter Draper & Andreas Freytag & Sören Scholvin & Luong Thanh Tran, 2016. "Is a ‘Factory Southern Africa’ Feasible?," World Bank Publications - Reports 23788, The World Bank Group.
    4. Jorge Niosi, 2010. "Building National and Regional Innovation Systems," Books, Edward Elgar Publishing, number 14006.
    5. Henry Wai-Chung Yeung, 2000. "Guest Editorial," Environment and Planning A, , vol. 32(2), pages 191-200, February.
    6. Roger Hayter & David W. Edgington, 2004. "Flying Geese In Asia: The Impacts of Japanese MNCs as a Source of Industrial Learning," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 95(1), pages 3-26, February.
    7. H. Yeung, 2006. "Change and Continuity in Southeast Asian Ethnic Chinese Business," Asia Pacific Journal of Management, Springer, vol. 23(3), pages 229-254, September.
    8. O'Connor, Kevin & Fuellhart, Kurt & Kim, Hyung Min, 2020. "Economic influences on air transport in Vietnam 2006–2019," Journal of Transport Geography, Elsevier, vol. 86(C).
    9. Ho Yeon Kim & Toshitaka Gokan, 2011. "Theories on FDI and the Behavior of MNEs in East Asia," Chapters, in: Masahisa Fujita & Ikuo Kuroiwa & Satoru Kumagai (ed.), The Economics of East Asian Integration, chapter 5, Edward Elgar Publishing.
    10. Peter Draper & Andreas Freytag & Sören Scholvin & Luong Thanh Tran, 2016. "Is a 'Factory Southern Africa' Feasible? Harnessing Flying Geese to the South African Gateway," CESifo Working Paper Series 5867, CESifo.

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