IDEAS home Printed from
   My bibliography  Save this paper

Attracting FDI: Australian Government Investment Promotion in Japan, 1983-96


  • Jamie Anderson


The trading relationship between Australia and Japan has been traditionally based on commodity exports, and a key Australian policy goal in the past has been to encourage Japanese investment in this sector in the hope of stabilising commodity trade. A serious deterioration in Australia’s terms of trade from the beginning of the 1980s resulting from a number of events – the global recession, the restructuring of Japanese industry and changes in Japan’s relations with the United States and the European Community – showed the need to diversify exports to Japan away from a heavy reliance on commodities and raw materials towards higher value-added primary products, manufactures and services. The attraction of Japanese investment into these sectors was an important part of this strategy. Japanese manufacturing investment was distinctly lacking in the mid-1980s and the Hawke and Keating governments used various methods to inform Japanese business of investment opportunities, provided tax incentives and research and development support for transnational corporations, and created the Investment Promotion Section (IPS) within the Tokyo office of Austrade to help promote investment. This paper shows how the IPS, which was established in 1991 to attract Japanese investment in manufacturing, high technology and processing industries, proved particularly successful in facilitating investment. This was especially true after its restructure in early 1994 when it moved away from broad educational efforts towards specific investment projects which matched potential investors with Australian firms. With a focus on areas in which Australia held comparative advantages, such as processed foods and further processing of raw materials, the effectiveness of investment promotion increased dramatically and Australian exports to Japan and the Asia Pacific region expanded considerably.

Suggested Citation

  • Jamie Anderson, 1998. "Attracting FDI: Australian Government Investment Promotion in Japan, 1983-96," Asia Pacific Economic Papers 284, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
  • Handle: RePEc:csg:ajrcau:284

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Russett, Bruce, 1985. "The mysterious case of vanishing hegemony; or, Is Mark Twain really dead?," International Organization, Cambridge University Press, vol. 39(02), pages 207-231, March.
    2. Gary Clyde Hufbauer & Kimberly Ann Elliott, 1994. "Measuring the Costs of Protection in the United States," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 77.
    3. Ruggie, John Gerard, 1982. "International regimes, transactions, and change: embedded liberalism in the postwar economic order," International Organization, Cambridge University Press, vol. 36(02), pages 379-415, March.
    4. Gilpin, Robert, 1971. "The Politics of Transnational Economic Relations," International Organization, Cambridge University Press, vol. 25(03), pages 398-419, June.
    5. Haggard, Stephan, 1988. "The institutional foundations of hegemony: explaining the Reciprocal Trade Agreements Act of 1934," International Organization, Cambridge University Press, vol. 42(01), pages 91-119, December.
    6. Moravcsik, Andrew, 1997. "Taking Preferences Seriously: A Liberal Theory of International Politics," International Organization, Cambridge University Press, vol. 51(04), pages 513-553, September.
    7. Strange, Susan, 1987. "The Persistent myth of lost hegemony," International Organization, Cambridge University Press, vol. 41(04), pages 551-574, September.
    8. Haggard, Stephan & Simmons, Beth A., 1987. "Theories of international regimes," International Organization, Cambridge University Press, vol. 41(03), pages 491-517, June.
    9. Gourevitch, Peter, 1978. "The second image reversed: the international sources of domestic politics," International Organization, Cambridge University Press, vol. 32(04), pages 881-912, September.
    10. Nelson, Douglas, 1989. "Domestic Political Preconditions of US Trade Policy: Liberal Structure and Protectionist Dynamics," Journal of Public Policy, Cambridge University Press, vol. 9(01), pages 83-108, January.
    11. Snidal, Duncan, 1985. "The limits of hegemonic stability theory," International Organization, Cambridge University Press, vol. 39(04), pages 579-614, September.
    12. Cohen, Benjamin J., 1990. "The political economy of international trade," International Organization, Cambridge University Press, vol. 44(02), pages 261-281, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    JEL classification:

    • F30 - International Economics - - International Finance - - - General


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:csg:ajrcau:284. 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). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.