Japan’s Foreign Direct Investment: Facts and Theoretical Considerations

  • Ryutaro Komiya
Part of the International Economic Association Series book series (IEA)

Abstract

The main purpose of this paper is to examine the phenomenon generally called foreign direct investment in a concrete case of present-day Japan, and to reconsider the theory of direct investment in the light of the findings. The paper begins by examining the concept of foreign direct investment and statistics compiled by national governments, in particular the Japanese government. It is shown that the distinction between direct and indirect investment cannot be clear-cut, and that there exist wide grey areas of different shades in between (section 1). Then the paper sketches out the history of Japan’s foreign direct investment in post-war years (section 2), and surveys different types of investment included in the direct investment statistics (section 3).

Keywords

Zinc Sugar Quartz Corn Depression 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Adelman, M. A. (1959) A and P: A Case Study in Price-Cost Behaviour and Public Policy (Cambridge, Mass.: Harvard University Press).Google Scholar
  2. Aliber, R. Z. (1970) ‘A Theory of Direct Foreign Investment’, in Kindleberger, C. P. (ed.) International Corporation, A Symposium (Cambridge: MIT Press).Google Scholar
  3. Caves, R. E. (1971) ‘International Corporation: The Industrial Economics of Foreign Investment’, Economica (new series) vol. 38, no. 149.Google Scholar
  4. Caves, R. E. and Jones, R. W. (1981) World Trade and Payments, 3rd edn. (Boston: Little-Brown).Google Scholar
  5. Drysdale, P. (ed.) (1972) Direct Foreign Investment in Asia and the Pacific (Canberra: Australian National University Press).Google Scholar
  6. Dunning, J. H. (1986) Japanese Participation in British Industry (London: Croom Helm).Google Scholar
  7. Hamada, K. (1972) ‘Japanese Investment Abroad’, in Drysdale (1972).Google Scholar
  8. Horaguchi, H. (1986) ‘Ajia ni okeru Nikkei Shinshutsu Kigyō no Tettai: 1971–84’ (Withdrawals of Japanese Overseas Investments in Asia), Ajia Keizai (The Asian Economy), vol. 27, no. 3 (March)Google Scholar
  9. Hymer, S. (1960) The International Operations of National Firms: A Study of Direct Foreign Investment (Cambridge, Mass.: MIT Press, 1976).Google Scholar
  10. Imai, K., Itami, H. and Koike, K. (1982) Naibu Soshiki no Keizaigaku (Economics of Internal Organisation (Tokyo: Tōyō-Keizai).Google Scholar
  11. JETRO (Nihon Bōeki Shinkō-kai — Japan External Trade Organisation) (1987) Sekai to Nihon no Kaigai Chokusetsu Tōshi: 1987 (World’s and Japan’s Overseas Direct Investment) (Tokyo: JETRO).Google Scholar
  12. Kindleberger, C. P. (1968) International Economics, 4th edn (Homewood, Ill.: Irwin).Google Scholar
  13. Kindleberger, C. P. (1969) American Business Abroad (New Haven: Yale University Press).Google Scholar
  14. Kojima, K. (1977) Kaigai Chokusetsu Tōshi Ron (On Overseas Direct Investment) (Tokyo: Daiyamondo-sha).Google Scholar
  15. Kojima, K. (1985) Nihon no Kaigai Chokusetsu Tōshi (Japan’s Overseas Direct Investment) (Tokyo: Bunshinsha).Google Scholar
  16. Komiya, R. (1967) ‘Shihon-Jiyūka no Keizaigaku’ (Economics of Liberalization of Direct Investment), Ekonomisto, 25 July 1967. A revised version is included in Komiya, R. Gendai Nihon Keizai Kenkyū (Studies on the Contemporary Japanese Economy) (Tokyo: University of Tokyo Press, 1975).Google Scholar
  17. Komiya, R. (1969) ‘Chokusetsu Tōshi to Sangyō Seisaku’ (Direct Investment and Industrial Policy), in Niida, H. and Ono, A. (eds) Nihon no Sangyō Soshiki (Japan’s Industrial Organisation) (Tokyo: Iwanami).Google Scholar
  18. Komiya, R. (1972) ‘Direct Foreign Investment in Postwar Japan’, in Drysdale (1972).Google Scholar
  19. Komiya, R. (1986) ‘Nihon Kigyō no Kōzōteki Kōdōteki Tokuchō’, Discussion Paper 86-J-4, Faculty of Economics, University of Tokyo. An English version is: ‘Structural Behavioral Characteristics of Japanese Firms’, a paper presented to the Hitotsubashi/Stanford GSB Conference on the Perspectives and the Nature of Corporation, 29 March–1 April 1987, Ito, Japan.Google Scholar
  20. Komiya, R. and Itoh, M. (1986) ‘International Trade and Trade Policy of Japan: 1955–84’, Discussion Paper 85-F-16, Faculty of Economics, University of Tokyo, January. To be included in a volume, edited by Okimoto, D. and Inoguchi, T. and to be published by Stanford University Press.Google Scholar
  21. Koshiba, T. (1987) ‘Wagakuni Chūshō-Kigyō no Kaigai Chokusetsu Tōshi to Gijutsu Bōeki’ (Small- and Medium-size Businesses in Japan’s Overseas Direct Investment and Trade in Technologies), Tōhoku-Gakuin Daigaku Ronshū, no. 104.Google Scholar
  22. Nihon Keizai Kyōiku Centre (Japan Centre for Economics Education) (ed.) (1987) Kaigai Chokusetsu Tōshi no Hanashi (On Overseas Direct Investment) (Tokyo: NKKC).Google Scholar
  23. Penrose, E. F. (1956) ‘Foreign Investment and the Growth of the Firm’, Economic Journal, vol. 66.Google Scholar
  24. Penrose, E. F. (1959) The Theory of the Growth of the Firm (Oxford: Blackwell).Google Scholar
  25. Sekiguchi, S. (1979a) Kaigai Tōshi no Shintenkai (New Developments in Overseas Investment) (Tokyo: Nihon-Keizai Shimbunsha).Google Scholar
  26. Sekiguchi, S. (1979b) Japanese Direct Foreign Investment (London: Macmillan).Google Scholar
  27. Sekiguchi, S. and Japan Economic Research Centre (eds) (1982) Kan-Taiheiyōken to Nihon no Chokusetsu Tōshi (Pan-Pacific Area and Japan’s Direct Investment) (Tokyo: Nihon-Keizai Shimbunsha).Google Scholar
  28. Sekiguchi, S. and Matsuba, K. (1974) Nihon on Chokusetsu Tōshi (Japan’s Direct Investment) (Tokyo: Nihon-Keizai Shimbunsha).Google Scholar
  29. Sumita, S., Komiya, R. and Watanabe, Y. (eds) (1972) Takokuseki Kagyō no Jittai (The Realities of Multinational Firms) (Tokyo: Nihon-Keizai Shimbunsha).Google Scholar
  30. Takamiya, S. and Thurley, K. (eds.) (1985) Japan’s Emerging Multinationals (Tokyo: University of Tokyo Press).Google Scholar
  31. Teece, D. J. (1985) ‘Multinational Enterprise, Internal Governance and Industrial Organization’, American Economic Association, (Papers and Proceedings) pp. 233–38.Google Scholar
  32. United Nations (1974) The Impact of Multinational Corporations on Development and on International Relations (New York: United Nations).Google Scholar
  33. Vernon, R. (1966) ‘International Investment and International Trade in the Product Cycle’, Quarterly Journal of Economics, vol. 80.Google Scholar
  34. Williamson, O. E. (1975) Markets and Hierarchies (New York: Free Press).Google Scholar
  35. Zaigai Kigyō Kyōkai (Association of Overseas Enterprises) (1986) Kaigai Chokusetsu Tōshi to Tettai (Overseas Direct Investment and Withdrawals).Google Scholar

Reference

  1. Mincer, J. and Higuchi, Y. (1987) ‘Wage Structures and Labor Turnover in the USA and in Japan’, Columbia University Center on Japanese Economy and Business, Working Paper no. 12 (September).CrossRefGoogle Scholar

Copyright information

© International Economic Association 1988

Authors and Affiliations

  • Ryutaro Komiya
    • 1
  1. 1.University Of TokyoJapan

Personalised recommendations