IDEAS home Printed from https://ideas.repec.org/p/kob/dpaper/dp2019-18.html
   My bibliography  Save this paper

Reappraisal of Japan-LAC Trade and Investment Relations Amid China's Ascendance

Author

Listed:
  • Mikio Kuwayama

    (Research Fellow of Kobe University Research Institute for Economics and Business (RIEB) and Managing Director of the Japan Association of Latin America and the Caribbean (JALAC), JAPAN)

Abstract

Though LAC's bilateral trade with Japan has not been as buoyant as that with China in recent years, Japan's trade relations with the region is more diversified and balanced in terms of trading partners, product composition, and trade balance. Furthermore, business activities of Japanese subsidiaries operating in the region are conducive to employment creation, export expansion (especially to third-country markets), and global value-chain developments in the region. In addition, Japan's FDI flows to LAC fare quite well when compared with those from China in both quantitative and qualitative respects: Japan's FDI stock is high and is diversified among targeted industries, thereby contributing to technological transfer and human resource development. Moreover, Japan has been a significant source of development finance for the LAC region; the present scale of JBIC's operations in Latin America rivals those of Chinese policy banks. The nature and scope of JICA's activities in LAC suggest the relationship between Japan and the LAC region has transformed from "Japan as donor and LAC as recipient" to "Japan-LAC global partners." As a result of the preceding, LAC nations are increasingly viewed by Japan as essential economic and political partners as Japan promotes its model of cooperation and economic governance in the Asia-Pacific region and globally. In short, cooperation has been an integral part of the Japan-LAC relationship, demonstrating how interactions in the private sector open space for government-to-government cooperation and vice versa. Strengthening commercial relations with Japan by reciprocally applying the public-private partnership (PPP) principle will assist LAC countries in addressing some structural problems and challenges of long data.

Suggested Citation

  • Mikio Kuwayama, 2019. "Reappraisal of Japan-LAC Trade and Investment Relations Amid China's Ascendance," Discussion Paper Series DP2019-18, Research Institute for Economics & Business Administration, Kobe University.
    • Handle: RePEc:kob:dpaper:dp2019-18
    as

    Download full text from publisher

    File URL: https://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2019-18.pdf
    File Function: First version, 2019
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. -, 2016. "Economic Survey of Latin America and the Caribbean 2016: The 2030 Agenda for Sustainable Development and the challenges of financing for development," Estudio Económico de América Latina y el Caribe, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 40327 edited by Eclac, September.
    2. -, 2017. "Foreign Direct Investment in Latin America and the Caribbean 2017," La Inversión Extranjera Directa en América Latina y el Caribe, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 42024 edited by Eclac, September.
    3. -, 2014. "Foreign Direct Investment in Latin America and the Caribbean 2013," La Inversión Extranjera Directa en América Latina y el Caribe, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 36861 edited by Eclac, September.
    4. -, 2018. "Exploring new forms of cooperation between China and Latin America and the Caribbean / 探索拉丁美洲和加 勒比地区与中国合 作的新空间," Libros y Documentos Institucionales, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 43215 edited by Eclac, June.
    5. -, 2018. "Exploring new forms of cooperation between China and Latin America and the Caribbean / 探索拉丁美洲和加 勒比地区与中国合 作的新空间," Libros y Documentos Institucionales, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 43214 edited by Eclac.
    6. -, 2018. "Foreign Direct Investment in Latin America and the Caribbean 2018," La Inversión Extranjera Directa en América Latina y el Caribe, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 43690 edited by Eclac, September.
    7. Ministry of Agriculture GOI, 2015. "Annual Report: 2010-2011," Working Papers id:6767, eSocialSciences.
    8. -, 2012. "Structural change for equality: an integrated approach to development. Thirty-four session of ECLAC. Summary," Libros y Documentos Institucionales, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 13535 edited by Eclac.
    9. Rosales V., Osvaldo, 2009. "La globalización y los nuevos escenarios del comercio internacional," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    10. Nobuaki Hamaguchi & Jie Guo & Chong-Sup Kim, 2018. "Cutting the Distance," SpringerBriefs in Economics, Springer, number 978-981-13-2435-2, October.
    11. -, 2012. "Structural change for equality: an integrated approach to development. Thirty-four session of ECLAC," Documentos de posición del período de sesiones de la Comisión 3079, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    Full references (including those not matched with items on IDEAS)

    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. Mikio Kuwayama, 2015. "Japan Latin America Relations Then and Now - The Japan Model of Economic Engagement: Opportunities for Latin America and The Caribbean," Revista Digital Mundo Asia Pacífico, Universidad EAFIT, vol. 4(7), pages 6-42, December.
    2. Yuanbo Li & Xufeng Zhu, 2019. "The 2030 Agenda for Sustainable Development and China’s Belt and Road Initiative in Latin America and the Caribbean," Sustainability, MDPI, vol. 11(8), pages 1-22, April.
    3. Mikio Kuwayama, 2021. "Globalized Business of Japanese Multinationals in Latin America: What Trade and Investment Statistics Do Not Show," Discussion Paper Series DP2021-18, Research Institute for Economics & Business Administration, Kobe University, revised Oct 2021.
    4. André Hofman & Claudio Aravena & Jorge Friedman, 2017. "Sources of Productivity and Economic Growth in Latin America and the Caribbean, 1990-2013," International Productivity Monitor, Centre for the Study of Living Standards, vol. 33, pages 51-76, Fall.
    5. Constantine, Collin, 2014. "Rethinking the Twin Deficits," MPRA Paper 58798, University Library of Munich, Germany.
    6. -, 2020. "Foreign Direct Investment in Latin America and the Caribbean 2020," La Inversión Extranjera Directa en América Latina y el Caribe, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 46541 edited by Eclac, September.
    7. -, 2012. "Structural change for equality: an integrated approach to development. Thirty-four session of ECLAC. Summary," Documentos de posición del período de sesiones de la Comisión 13535, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    8. Jorge Katz & Rodrigo Astorga, 2014. "Macro-to-micro interactions and economic development: a cross-country comparative study," Chapters, in: Gabriela Dutrénit & Judith Sutz (ed.), National Innovation Systems, Social Inclusion and Development, chapter 10, pages 276-303, Edward Elgar Publishing.
    9. Andersson, Martin & Palacio, Andrés & von Borries, Alvaro, 2022. "Why has economic shrinking receded in Latin America? A social capability approach," Lund Papers in Economic History 236, Lund University, Department of Economic History.
    10. Sodiq Arogundade & Mduduzi Biyase & Hinaunye Eita, 2021. "Foreign Direct Investment and Inclusive Human Development in Sub-Saharan African Countries:Does local Economic Conditions Matter?," Economic Development and Well-being Research Group Working Paper Series edwrg-01-2021, University of Johannesburg, College of Business and Economics, revised 2021.
    11. Velásquez Pinto, Mario D., 2016. "Unemployment protection in Colombia: a proposal for reforming the layoff protection mechanism," Libros de la CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 44061.
    12. Stuart, Sheila & Gény, Lydia Rosa & Abdulkadri, Abdullahi, 2018. "Advancing the economic empowerment and autonomy of women in the Caribbean through the 2030 Agenda for Sustainable Development," Studies and Perspectives – ECLAC Subregional Headquarters for The Caribbean 43232, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    13. -, 2018. "Emerging challenges and shifting paradigms: New perspectives on international cooperation for development," Coediciones, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 44002 edited by Eclac, July.
    14. -, 2017. "Linkages between the social and production spheres: Gaps, pillars and challenges," Libros y Documentos Institucionales, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 42269 edited by Eclac.
    15. Mario Cimoli & Jose Antonio Ocampo & Gabriel Porcile & Nunzia Saporito, 2020. "Choosing sides in the trilemma: international financial cycles and structural change in developing economies," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 29(7), pages 740-761, October.
    16. Doddamani, Chetan & Manoj, M., 2022. "Residential relocation and changes in household vehicle ownership and travel behavior: Exploring the context of Hubli-Dharwad twin-cities in India from a planning viewpoint," Transportation Research Part A: Policy and Practice, Elsevier, vol. 164(C), pages 134-155.
    17. Ofori, Isaac & Asongu, Simplice, 2022. "Repackaging FDI for Inclusive Growth: Nullifying Effects and Policy Relevant Thresholds of Governance," MPRA Paper 119052, University Library of Munich, Germany.
    18. Diop, Samba & Asongu, Simplice & Tchamyou, Vanessa, 2021. "The Macroeconomic Impact of Recent Political Conflicts in Africa: Generalized Synthetic Counterfactual Evidence," MPRA Paper 110696, University Library of Munich, Germany.
    19. Ferraz, Diogo & Moralles, Hérick Fernando & Suarez Campoli, Jéssica & Ribeiro de Oliveira, Fabíola Cristina & do Nascimento Rebelatto, Daisy Aparecida, 2018. "Economic Complexity and Human Development: DEA performance measurement in Asia and Latin America," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 25(4), pages 839-853.
    20. Sodiq Arogundade & Mduduzi Biyase & Hinaunye Eita, 2021. "Foreign Direct Investment and poverty in Sub-Saharan African countries: the role of host absorptive capacity," Economic Development and Well-being Research Group Working Paper Series edwrg-04-2021, University of Johannesburg, College of Business and Economics, revised 2021.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:kob:dpaper:dp2019-18. 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: Office of Promoting Research Collaboration, Research Institute for Economics & Business Administration, Kobe University (email available below). General contact details of provider: https://edirc.repec.org/data/rikobjp.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.