Economic and Political Factors for the Fall of Japanese Foreign Direct Investment in China

2016 ◽  
Vol 08 (03) ◽  
pp. 110-120
Author(s):  
Yuqing XING
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Wage Growth ◽  
Economic Factors ◽  
Political Factors ◽  
Japanese Fdi ◽  
Japanese Companies ◽  
Investment In China

Japanese direct investment in China fell sharply in 2013 and 2014. Both political and economic factors contributed to the fall. Political tensions between the two countries greatly exacerbated China risks as perceived by Japanese companies and dampened their confidence of investing in China. Additionally, China has lost its competitiveness of attracting export-oriented Japanese FDI because of the cumulative appreciation of the Yuan and rapid wage growth.

scholarly journals The motives for Japanese foreign direct investment in the Southeastern United States

2019 ◽  
Vol 11 (4) ◽  
pp. 324-338
Author(s):  
Remy Magnier-Watanabe ◽  
James Hoadley
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
National Level ◽  
State Level ◽  
Industrial Clusters ◽  
Southeastern Usa ◽  
Content Type ◽  
The Usa ◽  
Japanese Fdi ◽  
Japanese Companies

Purpose Whereas the USA is still the largest investment destination for Japanese companies, Japan also accounts as the second largest source of investment in the country. The purpose of this paper is to, empirically, examine the detailed motives of Japanese affiliates when investing in the Southeastern USA, adding to previous research at the national level. Design/methodology/approach This paper uses a qualitative approach based on the interviews of long-term Japanese investors in the manufacturing and wholesale trade industries in the Southeastern USA and applies text analysis to identify their motives. Findings The results show that Japanese firms engage in market- and efficiency-seeking foreign direct investment (FDI), and still apply a classic sequence of gradual and incremental market commitments. Market size and growth rate, reducing transaction or transportation costs, and integration within local value chains are the most important to them, whereas competition, creating an export base, lowering tax and accessing skilled labor are of little concern. Practical implications The goal of Japanese FDI in the USA is no longer to bypass tariffs but is still part of a complex industrial network of relations which drives further investment. This result can inform policy makers at the state level about the factors that can drive additional foreign investment, such as the establishment of industrial clusters. Originality/value This study offers current insights into the motives of Japanese FDI in two industries.

A Comparative Analysis of the Patterns of Japanese and Korean Foreign Direct Investment in China

2012 ◽  
pp. 309-324 ◽  
Author(s):  
Jai S. Mah ◽  
Sunyoung Noh
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Manufacturing Sector ◽  
Value Added ◽  
Chinese Economy ◽  
The Past ◽  
Employment Generation ◽  
Japanese Fdi ◽  
Investment In China ◽  
Opening Up

The current paper compares the patterns of Japanese outward foreign direct investment (OFDI) in China with that of Korea. As a result of the opening up of the Chinese economy together with the accumulating foreign exchange reserves, their FDI in China has risen over the past decades. The share of Japanese FDI in China has remained less than 20 percent of Japanese OFDI as a whole, while Korean FDI in China reached two-fifths of its total OFDI. The gravity model appears to be suitable for explaining the pattern of Korean FDI in China. By industries, the manufacturing sector has accounted for as much as or over three quarters of Japanese and Korean FDI in China. The former appears to be focused more on value-added industries such as machinery contributing to transfer of advanced technologies, while the latter is relatively more concentrated on labor intensive industries contributing to employment generation.

scholarly journals An Examination Of The Country Liquidity Index To Predict A Country's Foreign Direct Investment

2014 ◽  
Vol 13 (2) ◽  
pp. 359
Author(s):  
Roland J. Sparks ◽  
Nick Desai ◽  
Perumal Thirumurthy
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Economic Condition ◽  
Economic Factors ◽  
Foreign Direct Investments ◽  
Political Factors ◽  
Liquidity Index ◽  
Determining Factors ◽  
Determining Factor

Foreign direct investment (FDI) is critical to the economic development of any nation regardless of its level of growth. There is a plethora of research on the determining factors of FDI, both economic and non-economic, but very little on the weighted influence of these factors. This research is an attempt to categorize and rank the major determinates of FDI. The conclusion reached by this research is that economic condition of a country is a major determining factor for FDI, but there are other competing factors, as well, that have major impact on FDI. Using the Country Liquidity Index (CLI) as a barometer, the FDI is regressed to develop a model to predict the potential FDI of a country. Results conclude that only 22.46% of a country's FDI is explained by economic factors leaving the remaining 77.54% unexplained. This research attempts to explain the unexplained factors and rank the countries as overinvested and underinvested. A review of the data for the over and underinvested countries indicates that political factors and third country influences may outweigh economic factors when it comes to FDI. The paper concludes with a ranking of 62 countries and their foreign direct investment potential along with their current over/under foreign direct investments.

Dialect Diversity and Foreign Direct Investment in China

2021 ◽  
Vol 29 (2) ◽  
pp. 49-72
Author(s):  
Wei Feng ◽  
Yanrui Wu ◽  
Yue Fu
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Investment In China

Foreign direct investment in China: Policy, recent trend and impact1

2004 ◽  
Vol 33 (2) ◽  
pp. 99-130 ◽  
Author(s):  
K.C. Fung ◽  
Hitomi Iizaka ◽  
Sarah Y. Tong
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Recent Trend ◽  
China Policy ◽  
Investment In China

Weak State, Strong Networks: The Institutional Dynamics of Foreign Direct Investment in China. By Hongying Wang. [Hong Kong: Oxford University Press, 2001. xiii+211 pp. HK$150.00. ISBN 019-590631-4.]

2002 ◽  
Vol 172 ◽  
pp. 1065-1103
Author(s):  
Qi Luo
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Institutional Economics ◽  
New Institutional Economics ◽  
Regime Theory ◽  
Weak State ◽  
Institutional Dynamics ◽  
State Institutions ◽  
Oxford University ◽  
Investment In China

This is a competent work that challenges the claim of new institutional economics and international regime theory that effective state institutions in the host country are vital to the inflow, and indeed growth, of foreign direct investment (FDI). It argues that the large amount of FDI China has attracted so far has been facilitated more by the informal societal institutions represented by strong personal networks operating in the country than by the formal state institutions manifested by the weak legal system. The author validates her arguments with a large number of anecdotes based on over 100 interviews she conducted in China.

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