Short Circuiting Keiretsu: Japanese Electronic Firms in Asia

  • Hidetaka Yoshimatsu


Asia has become a major production base of electrical and electronic products. Not only has the electronics industry been a main engine of economic growth, but it has also served as the most important export sector in most East Asian countries. The growth of the electronics industry in the region has been sustained by the massive inflow of foreign direct investment (FDI). In the late 1960s and 1970s, most East Asian countries changed their basic industrialization policies from import-substitution to export-expansion, setting up export processing zones in which preferential measures were granted to export-oriented foreign multinational corporations (MNCs). Japanese electronics firms have been major investors and sustained the development of the electronics industry in East Asia by establishing meshed production networks and by systematically linking manufacturing plants in the region as a means of seeking an optimal international division of labor.


Foreign Direct Investment Electronic Industry East Asian Country Japanese Firm Consumer Electronic Product 
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© Vinod K. Aggarwal and Shujiro Urata 2002

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  • Hidetaka Yoshimatsu

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