Examination of the Singapore Shift in Japan's Foreign Direct Investment in Services in ASEAN

Shintaro Hamanaka
Additional contact information
Shintaro Hamanaka: Asian Development Bank Institute

No 267, ADBI Working Papers from Asian Development Bank Institute

Abstract: Asia is fast becoming the largest recipient of Japan's foreign direct investment (FDI). Within the Asian region, the Association of Southeast Asian Nations (ASEAN) has been the major investment destination of Japan. In the manufacturing sectors, however, the investment flows from Japan to ASEAN—with Thailand being the largest recipient—has been declining. In contrast, Japan’s FDI in the services sectors in ASEAN is growing rapidly. The recent phenomenon of the Singapore Shift in Japan's FDI in the ASEAN services sectors proves interesting. The prominent strategy among Japanese companies is to establish a commercial presence in Singapore, which they expect to be the “hub” of Southeast Asia, thereby enabling them to supply services to the entire ASEAN region. The magnitude of the Singapore Shift varies for every services sub-sector. By comparing transport and logistics with finance and insurance industries, this paper considers the critical determinants of the Singapore Shift.

Keywords: foreign direct investment; services direct investment; japan direct investment; asia services sector; asean services sector (search for similar items in EconPapers)
JEL-codes: F13 F15 F20 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2011-03-09
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.adbi.org/files/2011.03.09.wp267.singapore.japan.fdi.asean.pdf Full text (application/pdf)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden (http://www.adbi.org/files/2011.03.09.wp267.singapore.japan.fdi.asean.pdf [302 Moved Temporarily]--> https://www.adbi.org/files/2011.03.09.wp267.singapore.japan.fdi.asean.pdf [302 Moved Temporarily]--> https://www.adb.org/adbi/files/2011.03.09.wp267.singapore.japan.fdi.asean.pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:adbiwp:0267

Access Statistics for this paper

More papers in ADBI Working Papers from Asian Development Bank Institute Kasumigaseki Building 8F, 3-2-5, Kasumigaseki, Chiyoda-ku, Tokyo 100-6008, Japan. Contact information at EDIRC.
Bibliographic data for series maintained by ADB Institute ().