Japanese Investment Policy toward the Third World

William R. Nester
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William R. Nester: St John’s University

Chapter 3 in Japan and the Third World, 1992, pp 49-74 from Palgrave Macmillan

Abstract: Abstract Japan’s foreign investment policy has been an important pillar supporting its overall policy toward the Third World. As early as the mid-1970s, Ozawa recognised that ‘overseas production is now emerging as an integral part of both Japan’s economic growth and strategy and her foreign economic policy’.1 Tokyo has actively promoted foreign investment as a means of securing or reinforcing its existing trade power over strategic Third World markets, raw materials, energy sources, infrastructure and industries. The greater the amount of Japanese investments in a particular country, the greater the potential to use those investments to influence that country’s political elite to grant even greater economic concessions, which inevitably enhances Japan’s political power to extract even more economic power.

Keywords: Host Country; Foreign Investment; Investment Policy; European Economic Community; Japanese Firm (search for similar items in EconPapers)
Date: 1992
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-11678-2_4

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DOI: 10.1007/978-1-349-11678-2_4

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