IDEAS home Printed from https://ideas.repec.org/p/csg/ajrcau/385.html
   My bibliography  Save this paper

Japanese aid as a prerequisite for FDI: the case of Southeast Asian countries

Author

Listed:
  • Séverine Blaise

Abstract

This study investigates the nexus between Japan’s official development assistance and foreign direct investments inflows in Southeast Asian countries. An analysis of the geographical and sectoral decomposition of aid flows reveals that assistance programs were mainly allocated in the form of loans for economic infrastructure projects. This orientation attests that the needs of the recipient country are taken into account but also reveals that it is in keeping with a return on investment. Conditional logit analysis shows that Japanese aid flows did have a significant positive impact on private investors’ location choice even though other profit-maximising factors such as agglomeration effects or the quality of infrastructure had a leading spill-over effect. In a context of growing scarcity of aid funding, the study concludes by asserting the importance of a complementary process in which foreign aid is directed towards the development of infrastructure, acting as a pre-requisite for future direct investments. Finally, Japan providing an interesting case study, we will stress the need for a better cooperation between the public and private sectors in development assistance programs.

Suggested Citation

  • Séverine Blaise, 2009. "Japanese aid as a prerequisite for FDI: the case of Southeast Asian countries," Asia Pacific Economic Papers 385, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
    • Handle: RePEc:csg:ajrcau:385
    as

    Download full text from publisher

    File URL: https://crawford.anu.edu.au/pdf/pep/apep-385.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kiichiro Fukasaku & Masahiro Kawai & Michael G. Plummer & Alexandra Trzeciak-Duval, 2005. "Policy Coherence Towards East Asia: Development Challenges for OECD Countries," OECD Development Centre Policy Briefs 26, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mr. Olaf Unteroberdoerster & Ms. Runchana Pongsaparn, 2011. "Financial Integration and Rebalancing in Asia," IMF Working Papers 2011/243, International Monetary Fund.
    2. Srabani Roy Choudhury, 2017. "India–Japan Relations," International Studies, , vol. 54(1-4), pages 106-126, January.
    3. repec:wsr:wpaper:y:2013:i:120 is not listed on IDEAS
    4. Donaubauer, Julian & Herzer, Dierk & Nunnenkamp, Peter, 2012. "Does aid for education attract foreign investors? An empirical analysis for Latin America," Kiel Working Papers 1806, Kiel Institute for the World Economy (IfW Kiel).
    5. Philip Ifeakachukwu Nwosa & Temidayo Oladiran Akinbobola, 2016. "Capital Inflows and Economic Growth in Nigeria: The Role of Macroeconomic Policies," African Development Review, African Development Bank, vol. 28(3), pages 277-290, September.
    6. Kikuo Oishi, 2017. "Japan¡¯s Yen Loan, Prerequisite to Mass FDI from Japan," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 8(3), pages 40-50, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Siow Yue CHIA, 2006. "Labor Mobility and East Asian Integration," Asian Economic Policy Review, Japan Center for Economic Research, vol. 1(2), pages 349-367, December.
    2. Yamagata, Tatsufumi, 2007. "Securing Medical Personnel: Case Studies of Two Source Countries and Two Destination Countries," IDE Discussion Papers 105, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    3. Hadi SOESASTRO, 2006. "Regional Integration in East Asia: Achievements and Future Prospects," Asian Economic Policy Review, Japan Center for Economic Research, vol. 1(2), pages 215-234, December.
    4. Aiko Kikkawa & Raymond Gaspar & Cyn-Young Park, 2021. "International Migration, Cross-Border Labor Mobility, and Regional Economic Integration in Asia and the Pacific," Discussion papers 2102, ERINA - Economic Research Institute for Northeast Asia.
    5. Sta. Romana, Leonardo L., 2014. "Some Lessons from Korea's Industrialization Strategy and Experience," EconStor Preprints 102088, ZBW - Leibniz Information Centre for Economics.
    6. Séverine Blaise, 2009. "Japanese Aid as a Prerequisite for FDI : The Case of Southeast Asian Countries," Finance Working Papers 22767, East Asian Bureau of Economic Research.

    More about this item

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

    Statistics

    Access and download statistics

    Corrections

    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:385. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akira Kinefuchi (email available below). General contact details of provider: https://edirc.repec.org/data/ajrccau.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.