Japanese Foreign Investment in East Asia

This research examines the patterns of direct foreign investment (DFI) by Japan in the economies of East Asian countries, and the opportunities for future DFI in these economies. The findings of this research are presented in the following discussions: (1) an overview of Japanese DFI; (2) economic growth in East Asia; (3) Japanese DFI policy; (4) Japanese resource demand, DFI and opportunities for future DFI in resource industries in other East Asian economies; (5) Japanese manufacturing efficiency requirements, DFI and opportunities for future DFI in manufacturing industries in other East Asian economies; and (6) Japanese DFI and opportunities for future DFI in selected East Asian economies.

Japan's DFI in 1994 (latest year for which official data were available at the time this research was performed) totaled US$17.7 billion (Special, 1995, p. 12). This level of DFI represented as 29 percent increase over 1993 levels. Japanese DFI had dropped 20 percent in 1993 from 1992, but had increased by 43 percent in 1992 over 1991 levels.

There is a direct correlation between DFI and the growth of international trade (Geist, 1995, p. 676). "This phenomenon is generally attributed to the fact that as much as fifty percent of international trade occurs between affiliated companies, referred to as intrafirm trade" (Lawrence, 1991, p. 14). In addition to its effect on trade, DFI provides th

. . .
ds, DFI and Opportunities for Future DFI in Resource Industries in Other East Asian Economies Metals prices eased in the fourth calendar quarter of 1995, as demand from developed countries slowed (Morgan & Pain, 1996, p. 29). Copper prices weakened considerably, with Chinese production projected to rise sharply through 1996 at a time when demand is moderating. Aluminum prices also weakened in recent months, after demand rose in the early-part of 1995 as Japanese electronics manufactures accumulated stocks. On average metals prices are projected to be approximately 7.5 percent lower in 1996 than in 1995. Oil prices strengthened in 1996, with American refiners raising demand sharply as weather conditions deteriorated (Morgan & Pain, 1996, p. 29). Prices had previously been weak, with OPEC output remaining above its production ceiling. The present economic slowdown has been the most protracted in the post-war period, with 1995 being the fourth successive year with negligible economic growth (Morgan & Pain, 1996, p. 36). The economic recession has dampened Japanese demand for raw materials. Further, real economic growth in 1996 is projected at only one-half of one-percent. The continued weakness of the economy reflects adve
. . .

Some common words found in the essay are:
Morgan Pain, East Asian, South Korea, Hong Kong, Japanese DFI, Robinson Wrightsman, East Asia, Ministry Finance, Taiwan Asia/Pacific, JT Co, hong kong, east asian, east asia, hughes 1995, south korea, geist 1995, comparative advantage, foreign investment, pain 1996, morgan pain, morgan pain 1996, east asian economies, east asian countries, opportunities future dfi, fong wilson 1995,
Approximate Word count = 9947
Approximate Pages = 40 (250 words per page)

More Essays on Japanese Foreign Investment in East Asia