Patterns and strategies of Foreign Direct Investment: the case of Japanese firms
This paper is to study globalization motives and strategies of Japanese manufacturing industries by analyzing the causes and patterns of foreign direct investment (FDI) of Japanese manufacturing firms. We use regression analysis to determine internally driving-out factors and externally-inducing factors. Japanese FDI strategy has gone through three different stages; from natural resource-seeking investment in the 1950s and 1960s to market-expansion investment in the 1970s and 1980s and to a combination of cost-reducing (low-cost labor-seeking) investment and market-penetrating investment in the 1990s. Our findings show that Japanese FDI in Asia and other developing countries tends to be in labor-intensive sectors where Japanese firms are losing their comparative advantages at home. The main motive for FDI into these regions is low-cost resource seeking. On the other hand, Japanese FDI in the US and Europe tends to be knowledge-intensive sectors where Japanese firms attempt to internalize transaction and information costs by globalizing its production. The main motive for FDI into these regions is market-seeking.
Volume (Year): 35 (2003)
Issue (Month): 16 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/RAEC20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RAEC20|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Douglas P Woodward & Robert J Rolfe, 1993. "The Location of Export-Oriented Foreign Direct Investment in the Caribbean Basin," Journal of International Business Studies, Palgrave Macmillan, vol. 24(1), pages 121-144, March.
- John H Dunning, 1995. "Reappraising the Eclectic Paradigm in an Age of Alliance Capitalism," Journal of International Business Studies, Palgrave Macmillan, vol. 26(3), pages 461-491, September.
- John H Dunning, 1988. "The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions," Journal of International Business Studies, Palgrave Macmillan, vol. 19(1), pages 1-31, March.
- Azrak, Paul & Wynne, Kevin, 1995. "Protectionism and Japanese direct investment in the United States," Journal of Policy Modeling, Elsevier, vol. 17(3), pages 293-305, June.
- David W Loree & Stephen E Guisinger, 1995. "Policy and Non-Policy Determinants of U.S. Equity Foreign Direct Investment," Journal of International Business Studies, Palgrave Macmillan, vol. 26(2), pages 281-299, June.
- Catherine L. Mann, 1989.
"Determinants of Japanese direct investment in U.S. manufacturing industries,"
International Finance Discussion Papers
362, Board of Governors of the Federal Reserve System (U.S.).
- Mann, Catherine L., 1993. "Determinants of Japanese direct investment in US manufacturing industries," Journal of International Money and Finance, Elsevier, vol. 12(5), pages 523-541, October.
- Petri, Peter A., 1988. "Korea's export niche: Origins and prospects," World Development, Elsevier, vol. 16(1), pages 47-63, January.
- Robert Grosse & Len J Trevino, 1996. "Foreign Direct Investment in the United States: An Analysis by Country of Origin," Journal of International Business Studies, Palgrave Macmillan, vol. 27(1), pages 139-155, March.
- Tadashi Yamada & Tetsuji Yamada, 1996. "Ec Integration And Japanese Foreign Direct Investment In The Ec," Contemporary Economic Policy, Western Economic Association International, vol. 14(1), pages 48-57, 01.
When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:35:y:2003:i:16:p:1739-1746. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If references are entirely missing, you can add them using this form.