On Japanese Foreign Direct Investment

Peter J. Buckley
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Peter J. Buckley: University of Bradford Management Centre

Chapter 10 in The Multinational Enterprise, 1989, pp 185-201 from Palgrave Macmillan

Abstract: Abstract Japanese foreign direct investment is felt by some analysts to require a special approach because it exhibits several characteristics which differ from US outward investment. These may be characterised as follows (Ozawa, 1979b). 1. A later take off of outward investment, dating from the mid 1960s in the case of Japan. 2. A clustering of Japanese direct investment in Asia and Latin America rather than in advanced economies. 3. The different industrial structure of Japanese investment which is concentrated in relatively labour intensive or technologically standardised products such as textiles, metal products, unsophisticated electrical goods and chemicals. 4. The type of investment characterised in (3) and (2) above is carried out by small- and medium-sized manufacturers, who account for a high proportion of Japanese FDI. 5. The proportion of Japanese investment in extractive ventures is higher than any other industrialised country. 6. Japanese firms are deemed to be more responsive to the formation of joint ventures with host country firms than are US and other source country firms. 7. Group investment, where a number of Japanese firms, usually trading companies, often with help from Government agencies participate jointly as a common form of foreign investment. As a result external sources of funds are called upon to finance FDI (see also Ozawa. 1979a)

Keywords: Foreign Direct Investment; Direct Investment; Source Country; Multinational Enterprise; Japanese Firm (search for similar items in EconPapers)
Date: 1989
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DOI: 10.1007/978-1-349-11026-1_10

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