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Has Abenomics Succeeded in Raising Japan's Inward Foreign Direct Investment?

Takeo Hoshi ()

Asian Economic Policy Review, 2018, vol. 13, issue 1, 149-168

Abstract: Japan is known to have an exceptionally low level of inward foreign direct investment (FDI). The promotion of inward FDI is one of the policy goals of Abenomics structural reforms. This present paper studies the accumulation of Japan's inward FDI stock during the first 3 years of Abenomics (2012–2015), and finds no evidence that Japan's inward FDI stock increased more than the trend before Abenomics started would have predicted. A comparison of the main policies for promoting inward FDI that have been implemented to the real and perceived impediments to inward FDI reveals that it may be advisable to shift the emphasis of the policy to address more regulatory and administrative issues and to reduce the cost of doing business in Japan.

Date: 2018
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Asian Economic Policy Review is currently edited by Takatoshi Ito, Akira Kojima, Colin McKenzie and Shujiro Urata

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Handle: RePEc:bla:asiapr:v:13:y:2018:i:1:p:149-168