Adjustment Through Globalization: The Role of State FDI Finance

Mireya Solís

Japanese Economy, 2000, vol. 28, issue 5, 27-49

Abstract: One of the greatest puzzles in the debate over Japanese industrial policy—which has been characterized by export promotion, infant industry protection, and strategic policies to influence resource allocation and industrial adjustment—is the fact that, throughout the entire postwar period, the Japanese government provided subsidized loans to outward-bound foreign direct investment (FDI). Why would a government keen on building a home-based industrial juggernaut support the relocation of production abroad?

Date: 2000
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DOI: 10.2753/JES1097-203X280527

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