IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Organisation, Motivations and Case Studies of Japanese Direct Investment in Real Estate 1985-94

  • Roger Farrell
Registered author(s):

    Between 1985 and 1994 there was a remarkable rise and decline in Japanese real estate investment abroad which has been little documented or analysed, despite its economic scale and political impact. This paper is a further exploration of the nature and causes of this form of investment, following on from a broader study of its determinants in Pacific Economic Paper No. 271 of September 1997. It provides supporting evidence, through an examination of the organisation and motivations of investors, for the hypothesis that Japanese investors in real estate were predominantly influenced by the financial environment in Japan after the mid 1980s, rather than by more strategic factors such as their firm-specific advantages. According to traditional industrial organisation theory, FDI (foreign direct investment) is associated with investor control over assets and an active managerial role by investors. Hence, the purpose of FDI is to pursue a strategic international expansion by a firm, based on its specific proprietary advantages over local firms (Dunning 1981; 1993). Notably, Hymer (1976) categorised active investment as type II if it involved both control and management; alternatively, inactive investment, without control, is categorised as type I in nature. Evidence is provided that the corporate and financial organisational structure of Japanese real estate FDI did not exhibit type II features to any significant extent. It is argued that the organisational and corporate strengths of Japanese firms explain little of the pattern of real estate FDI over the 10 years in review. The paper concludes that Japanese real estate investment appears to be an exception to the traditional firm-specific model of FDI.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: https://crawford.anu.edu.au/pdf/pep/pep-282.pdf
    Download Restriction: no

    Paper provided by Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University in its series Asia Pacific Economic Papers with number 282.

    as
    in new window

    Length: 60 pages
    Date of creation: Aug 1998
    Date of revision:
    Handle: RePEc:csg:ajrcau:282
    Contact details of provider: Postal: Canberra ACT 2601
    Phone: (61-2) 6249 3780
    Fax: (61-2) 6249 3941
    Web page: https://crawford.anu.edu.au/research_units/ajrc/Email:


    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:csg:ajrcau:282. 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: (Akira Kinefuchi)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.