 Japanese Direct Investment in Asia and the European Union: Is There an Interdependence?Bernadette Andreosso-O’Callaghan and Jean-Pascal Bassino () Chapter 2 in The Changing Economic Environment in Asia, 2001, pp 26-51 from Palgrave Macmillan Abstract: Abstract The 1997–8 Asian financial crisis indicates the growing interdependence existing between EU and Asian economies. Excessive reliance upon international capital flows is currently seen as one of the main explanatory factors of this turmoil, combined with an inappropriate allocation of domestic resources and the many distortions induced by market-unfriendly policies. The rapid depreciation of most Asian currencies against both the US dollar and major European currencies may enhance the comparative advantage of these countries. However, the collapse of domestic demand in the ASEAN countries has induced a cautious attitude on the part of foreign investors, who had to postpone or cancel several projects. In addition, they had to reconsider or even to change drastically their strategy aimed at implementing — within their business group — an international division of labor, and therefore international trade flows between their subsidiaries. Keywords: Business Group; Asian Crisis; Production Subsidiary; Asian Currency; Previous Investment (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-28726-6_3 Ordering information: This item can be ordered from DOI: 10.1007/978-0-230-28726-6_3 Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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