3 - The Surge in Inward Foreign Direct Investment  pp. 56-83

The Surge in Inward Foreign Direct Investment

By Ralph Paprzycki and Kyoji Fukao

Image View Previous Chapter Next Chapter



Given the various formal and informal entry barriers, foreign direct investment (FDI) flows into Japan were little more than a trickle during most of the postwar period. However, toward the end of the 1990s, the trickle turned into what by the country's own standard can only be described as a deluge, and during the space of only two years, 1999 to 2000, Japan attracted more such inflows than in the entire preceding three decades. Foreign investments at this time were headline-grabbing news, including such prominent deals as Renault's acquisition of a controlling stake in Japan's second-largest motor vehicle manufacturer, Nissan, and the sale of venerable Long-Term Credit Bank to an American private equity fund, Ripplewood Holdings. Both the sums involved and the nature of many of the investments during this period – the acquisition of struggling or failed Japanese firms – represent a watershed in the history of FDI in Japan.

The aim of this chapter is to examine this surge in inward FDI and the underlying reasons in detail. It will be argued that a host of interrelated developments during the 1990s significantly improved the investment climate for foreign companies wishing to do business in Japan: the deteriorating economic situation during the “lost decade” eroded many of the real or perceived informal obstacles to FDI, such as high prices and cross-shareholdings, spurred the government to deregulate, produced distressed companies that became potential takeover targets, and led to a general shift in attitudes toward foreign companies in Japan.

3

Reference Title: References

Reference Type: reference-list

Ahmadjian, C. L. and J. R. Lincoln (2001) “Keiretsu, governance, and learning: Case studies in change from the Japanese automotive industry,” Organization Science 12 (November–December), 683–701.
APEC (1999) Committee on Trade and Investment, Guide to the Investment Regimes of the APEC Member Economies, Singapore: Asia-Pacific Economic Cooperation.
A. T. Kearney (2004) FDI Confidence Index, Global Business Policy Council, A. T. Kearney, Inc. Online: <http://www.atkearney.com/shared_res/pdf/FDICIOct_2004_S.pdf> (accessed March 12, 2007).
A. T. Kearney (2005) FDI Confidence Index, Global Business Policy Council, A. T. Kearney, Inc. Online: <http://www.atkearney.com/shared_res/pdf/FDICI_2005.pdf> (accessed March 12, 2007).
Baily, M. N. and R. M. Solow (2001) “International productivity comparisons built from the firm level,” Journal of Economic Perspectives 15(3), 151–172.
Bank of Japan (2006) “The new estimates of output gap and potential growth rate” (sic), Bank of Japan Review 2006-E-3. Online: <http://www.boj.or.jp/en/type/ronbun/rev/data/rev06e03.pdf> (accessed April 2, 2007).
Bayoumi, T. (2001) “The morning after: Explaining the slowdown in Japanese growth in the 1990s,” Journal of International Economics 53(2), 241–259.
Belderbos, R. A. (1998) “FDI and licensing strategies by Dutch multinationals in Japan,” Research Memoranda NIBOR/RM/98/02, Netherlands Institute of Business Organization and Strategy Research, Maastricht University.
Bergsten, C. F., T. Ito, and M. Noland (2001) No More Bashing: Building a New Japan–United States Economic Relationship, Washington, DC: Institute for International Economics.
Blomström, M., B. Gangnes, and S. La Croix (2001) Japan's New Economy: Continuity and Change in the Twenty-First Century, New York: Oxford University Press.
Blomström, M. and A. Kokko (2003) “The economics of foreign direct investment incentives,” NBER Working Paper No. 9489, National Bureau of Economic Research, Cambridge, MA.
Blomström, M. and F. Sjöholm. (1998) “Technology transfer and spillovers? Does local participation with multinationals matter?” NBER Working Paper No. 6816, National Bureau of Economic Research, Cambridge, MA.
Christensen, L. R., D. Cummings, and D. W. Jorgenson (1995) “Economic growth, 1947–1973: An international comparison,” in D. W. Jorgenson (ed.), Productivity, Volume 2, Cambridge, MA: MIT Press.
Corrado, C., C. Hulten, and D. Sichel (2005) “Measuring capital and technology: An extended framework,” in C. Corrado, J. Haltiwanger, and D. Sichel (eds.), Measuring Capital in the New Economy, Chicago: University of Chicago Press.
Corrado, C., C. Hulten, and D. Sichel (2006) “Intangible capital and economic growth,” NBER Working Paper No. 11948, National Bureau of Economic Research, Cambridge, MA.
Council on Economic and Fiscal Policy (2005) “Toward the realization of a dynamic, stable society,” Economic and Fiscal Prospects Working Group, Japan's 21st Century Vision, Cabinet Office. Online: <http://www.keizai-shimon.go.jp/english/publication/pdf/050419visionprospects_report.pdf> (accessed March 29, 2007).
Council on Economic and Fiscal Policy (2007) “Nihon keizai no shinro to senryaku ni tsuite” [Course and strategy for the Japanese economy], Cabinet Office. Online: <http://www.keizai-shimon.go.jp/cabinet/2007/decision0125_01.pdf> (accessed April 2, 2007).
David, S. (2006) “Good-bye Japan? Market withdrawals 1999–2005: Reasons, barriers, and company-specific factors,” Results of a survey conducted at the Department of Business Studies, East Asian Economic Studies, University of Duisburg-Essen, mimeo.
De Vecchi, A. F., M. Dratwa, and M. E. Wiedemann (1999) “Healthcare systems and end-stage renal disease (ESRD) therapies – an international review: Costs and reimbursement/funding of ESRD therapies,” Nephrology Dialysis Transplantation 14 [Suppl 6], 31–41. Online: <http://ndt.oxfordjournals.org/cgi/reprint/14/suppl_6/31> (accessed March 12, 2007).
Development Bank of Japan (2000) “Trend of international reorganization affecting the Japanese automobile and auto parts industries,” Development Bank of Japan Research Report No. 8.
Doms, M. E. and J. B. Jensen (1998) “Comparing wages, skills, and productivity between domestically and foreign-owned manufacturing establishments in the United States,” in R. E. Baldwin, R. E. Lipsey, and J. D. Richardson (eds.), Geography and Ownership as Bases for Economic Accounting, Chicago: University of Chicago Press.
Dunning, J. H. (1993) Multinational Enterprises and the Global Economy, Wokingham: Addison-Wesley.
Eaton, J. and A. Tamura (1994) “Bilateralism and regionalism in Japanese and U.S. trade and direct foreign investment patterns,” Journal of the Japanese and International Economies 8(4), 478–510.
Economic and Social Research Institute (2005) “Heisei 17-nen M&A kenkyukai kiji yoshi, heisei 17-nen 2-gatsu 18-nichi kaisai” [Transcript of the 2005 M&A research meeting, 18 February 2005], M&A Kenkyukai Salon. Online: <http://www.esri.go.jp/jp/mer/kenkyukai/050218-03.pdf> (accessed March 12, 2007).
Economic Planning Agency (1998) Economic Survey of Japan (1996–1997), Tokyo.
Encarnation, D. (1992) Rivals Beyond Trade: America versus Japan in Global Competition, Ithaca: Cornell University Press.
European Business Community in Japan (2004) Trade, Investment and the Reform Nexus: The EBC Report on the Japanese Business Environment 2004, Tokyo.
European Business Council (2005) Key Moment for Reform: The EBC Report on the Japanese Business Environment 2005, Tokyo.
Fairbank, J. K., E. O. Reischauer, and A. M. Craig (1973) East Asia: Tradition and Transformation, Boston: Houghton Mifflin Company.
Feenstra, R. C. (1998) “Facts and fallacies about foreign direct investment,” Working Paper 98–04, Department of Economics, University of California, Davis. Online: <http://www.econ.ucdavis.edu/faculty/fzfeens/pdf/fdi2.pdf> (accessed January 15, 2007).
Flath, D. (2003) “Regulation, distribution efficiency, and retail density,” in M. Blomström, J. Corbett, F. Hayashi, and A. Kashyap (eds.), Structural Impediments to Growth in Japan, Chicago: University of Chicago Press.
Fukao, K. and K. Ito (2003) “Foreign direct investment and service trade: The case of Japan,” in T. Ito and Anne O. Krueger (eds.), Trade in Services in the Asia-Pacific Region, National Bureau of Economic Research – East Asia Seminar on Economics, Volume 11, Chicago: University of Chicago Press.
Fukao, K., T. Inui, H. Kawai, and T. Miyagawa (2004) “Sectoral productivity and economic growth in Japan, 1970–98: An empirical analysis based on the JIP Database,” in T. Ito and A. Rose (eds.), Growth and Productivity in East Asia (National Bureau of Economic Research – East Asia Seminar on Economics), Volume 13, Chicago: University of Chicago Press.
Fukao, K., K. Ito, and H. U. Kwon (2004) “Characteristics and effects of Japan's inward FDI,” Paper prepared for the CGP Conference ‘International Economic Relations and Structural Change: Issues and Policy Options for Japan and the United States.’ Online: <http://www.fordschool.umich.edu/rsie/Conferences/CGP/May2004Papers/Fukao.pdf> (accessed January 15, 2007).
Fukao, K., K. Ito, and H. U. Kwon (2005) “Do out-in M&As bring higher TFP to Japan? An empirical analysis based on micro-data on Japanese manufacturing firms,” Journal of the Japanese and International Economies 19(2), 272–301.
Fukao, K., Y. G. Kim, and H. U. Kwon (2006) “Plant turnover and TFP dynamics in Japanese manufacturing,” Hi-Stat Discussion Paper Series No. 180, Hitotsubashi University. Online: <http://hi-stat.ier.hit-u.ac.jp/research/discussion/2006/pdf/D06–180.pdf>.
Fukao, K., H. U. Kwon, and M. Takizawa (2006) “Tainichi kokunai kigyokan M&A to hibaishu kigyo no performance” [Out-in and in-in M&As and target firm performance], Hi-Stat Discussion Paper Series No. 133, Hitotsubashi University. Online: <http://hi-stat.ier.hit-u.ac.jp/research/discussion/2005/pdf/D05–133.pdf>.
Fukao, K. and T. Miyagawa (2007) “Productivity in Japan, the US, and the major EU economies: Is Japan falling behind?” Paper prepared for the Third International Workshop of the Joint Research Study Group ‘EU Economy,’ EUIJ Tokyo Consortium, Hitotsubashi University, Tokyo, March 25, 2007. Online: <http://www.cm.hit-u.ac.jp/~euij/pdf/Fukao.pdf> (accessed April 2, 2007).
Fukao, K. and Y. Murakami (2005) “Do foreign firms bring greater total factor productivity to Japan?” Journal of the Asia Pacific Economy 10(2), 237–54.
Genda, Y. (1998) “Japan: Wage differentials and changes since the 1980s,” in T. Tachibanaki (ed.), Wage Differentials: An International Comparison, Basingstoke: Macmillan Press and New York: St. Martin's Press.
Ghosn, C. and P. Riès (2005) Shift: Inside Nissan's Historic Revival, New York: Currency/Doubleday.
Globerman, S., J. C. Ries, and I. Vertinsky (1994) “The economic performance of foreign affiliates in Canada,” Canadian Journal of Economics 27(1), 143–56.
Godo, Y. (2001) “Estimation of average years of schooling by levels of education for Japan and the United States, 1890–1990,” mimeo, Tokyo: FASID. Online: <http://www.fasid.or.jp/english/surveys/research/program/research/pdf/database/2001–001.pdf> (accessed January 17, 2007).
Godo, Y. and Y. Hayami (2002) “Catching-up in education in the economic catch-up of Japan with the United States,” Economic Development and Cultural Change 50(4), 961–78.
Goldman Sachs (2003) “Dreaming with BRICs: The path to 2050,” Global Economics Paper No. 99. Online: <http://www.gs.com/insight/research/reports/99.pdf> (accessed March 10, 2007).
Good, D. H., M. I. Nadiri, and R. C. Sickles (1997) “Index number and factor demand approaches to the estimation of productivity,” in M. H. Pesran and P. Schmidt (eds.), Handbook of Applied Econometrics, Volume 2: Microeconometrics, Oxford: Basil Blackwell.
Griffith, R. and H. Simpson (2001) “Characteristics of foreign-owned firms in British manufacturing,” IFS Working Papers 01/10, Institute for Fiscal Studies, London.
Harner, S. M. (2000) Japan's Financial Revolution and How American Firms are Profiting, Armonk, NY: M.E. Sharpe.
Harrigan, J. and R. Vanjani (2003) “Is Japan's trade (still) different?” Journal of the Japanese and International Economies 17(4), 507–19.
Hayashi, F. and E. C. Prescott (2002) “The 1990s in Japan: A lost decade?” Review of Economic Dynamics 5(1), 206–35.
H⊘j, J. and M. Wise (2004) “Product market competition and economic performance in Japan,” Economics Department Working Papers No. 387, OECD. Online: <http://www.olis.oecd.org/olis/2004doc.nsf/linkto/eco-wkp(2004)10> (accessed January 18, 2007).
Horiuchi, A. (2004) “Ginko kiki to kinyu system no saikochiku” [The banking crisis and the reconstruction of the financial system], Financial Review 73 (September), Policy Research Institute, Ministry of Finance. Online: <http://www.mof.go.jp/f-review/r73/r_73_041_069.pdf> (accessed March 6, 2007).
Hoshi, T. and A. K. Kashyap (2001) Corporate Financing and Governance in Japan: The Road to the Future, Cambridge, MA: MIT Press.
Howe, C. (1996) The Origins of Japanese Trade Supremacy: Development and Technology in Asia from 1540 to the Pacific War, Chicago: University of Chicago Press.
Ikeda, M. and Y. Nakagawa (2002) “Globalization of the Japanese automobile industry and reorganization of keiretsu-suppliers,” Actes du GERPISA No. 33 (March), Université d'Evry. Online: <http://www.univ-evry.fr/labos/gerpisa/actes/33/33-3.pdf> (accessed April 27, 2007).
IMF (1993) Balance of Payments Manual, Fifth Edition, Washington, DC: International Monetary Fund. Online: <http://www.imf.org/external/np/sta/bop/BOPman.pdf> (accessed March 10, 2007).
IMF (1998a) World Economic Outlook, October, Washington, DC: International Monetary Fund.
IMF (1998b) Japan: Selected Issues, IMF Staff Country Report 98/113, Washington, DC: International Monetary Fund.
Ito, K. (2002) “Are foreign multinationals more efficient? Plant productivity in the Thai automobile industry,” ICSEAD Working Paper Series 2002–19, The International Centre for the Study of East Asian Development, Kitakyushu.
Ito, K. (2004a) “Foreign ownership and plant productivity in the Thai automobile industry in 1996 and 1998: A conditional quantile analysis,” Journal of Asian Economics 15(2), 321–53.
Ito, K. (2004b) “Foreign ownership and productivity in the Indonesian automobile industry: Evidence from establishment data for 1990–99,” in T. Ito and A. Rose (eds.), Growth and Productivity in East Asia, Chicago: University of Chicago Press.
Ito, K. (2004c) “Plant productivity, keiretsu, and agglomeration in the Japanese automobile industry: An empirical analysis based on micro-data of Census of Manufactures 1981–1996” (sic), Hi-Stat Discussion Paper Series No. 51, Hitotsubashi University. Online: <http://hi-stat.ier.hit-u.ac.jp/research/discussion/2004/pdf/D04–51.pdf> (accessed March 12, 2007).
Ito, K. and K. Fukao (2001) “Jidosha sangyo no seisansei: ‘Kogyo Tokei Chosa’ kohyo data ni yoru jissho bunseki” [The productivity of the automobile industry: An empirical analysis based on the establishment-level data of the Census of Manufactures], RIETI Discussion Paper Series 01-J-002, Research Institute of Trade and Industry, Tokyo. Online: <http://www.rieti.go.jp/jp/publications/dp/01j002.pdf> (accessed March 12, 2007).
Ito, K. and K. Fukao (2004) “Physical and human capital deepening and new trade patterns in Japan,” NBER Working Paper No. 10209, National Bureau of Economic Research, Cambridge, MA.
Ito, T. and M. Tsuri (2003) “Macroeconomic impacts of aging in Japan on the balance of current accounts,” Discussion Paper No. 170, Project on Intergenerational Equity, Institute of Economic Research, Hitotsubashi University. Online: <http://www.ier.hit-u.ac.jp/pie/Japanese/discussionpaper/dp2003/dp170/text.pdf> (accessed January 17, 2007).
Japan Center for International Finance (2004) “Assessment and strategies of foreign financial institutions in Japan regarding the Tokyo financial/capital market,” Japan Center for International Finance, Tokyo. Online: <http://www.jcif.or.jp/pdf/asff200407.pdf> (accessed April 3, 2007).
Japan Research Institute (2000) “The impact of foreign direct investment (FDI) in Japan on the Japanese economy,” Monthly Review, September. Online: <http://www.jri.co.jp/ english/thinktank/research/monthly/pdf/MRe200009fdi.pdf> (accessed February 16, 2007).
Japan Small Business Research Institute (2003) White Paper on Small and Medium Enterprises in Japan 2003, Ministry of Economy, Trade and Industry, Tokyo. Online: <http://www.chusho.meti.go.jp/pamflet/hakusyo/h15/download/2003haku_eng.pdf> (accessed January 22, 2007).
JETRO (2002) “The survey on actual conditions regarding access to Japan: Health care services.” Online: <http://www.jetro.go.jp/en/stats/survey/access/e_iryofukushi.pdf> (accessed March 12, 2007).
JETRO (2004a) “Retail business,” JETRO Japanese Market Reports No. 72. Online: <http://www.jetro.go.jp/en/market/reports/jmr/072.pdf> (accessed March 8, 2007).
JETRO (2004b) “The 9th survey on attitudes of foreign-affiliated companies toward direct investment in Japan.” Online: <http://www.jetro.go.jp/en/stats/survey/surveys/foreign_companies04.pdf> (accessed April 14, 2007).
JETRO (2004c) 2004 JETRO White Paper on International Trade and Foreign Direct Investment, Tokyo: JETRO. Online: <http://www.jetro.go.jp/en/stats/white_paper/2004.pdf> (accessed April 14, 2007).
JETRO (2005a) “Automobile assembly parts,” JETRO Japanese Market Reports No. 76. Online: <http://www.jetro.go.jp/en/market/reports/jmr/076.pdf> (accessed March 8, 2007).
JETRO (2005b) “Ongoing change in Japan's life insurance industry,” Japan Economic Monthly, August. Online: <http://www.jetro.go.jp/en/market/trend/jem/0508_jeme.pdf> (accessed March 8, 2007).
JETRO (2005c) “Trends in the pharmaceutical industry,” Japan Economic Monthly, August. Online: <http://www.jetro.go.jp/en/market/trend/jem/0508_jeme.pdf> (accessed March 8, 2007).
JETRO (2005d) “Corporate participation in medical facility management,” Japan Economic Monthly, July. Online: <http://www.jetro.go.jp/en/market/trend/jem/0507_jeme.pdf> (accessed March 8, 2007).
JETRO (2005e) “Attractive sectors: Medical care.” Online: <http://www.jetro.go.jp/en/market/attract/medical/med.pdf> (accessed March 12, 2007).
JETRO (2005f) “Facilitating the movement of people across national borders: Revitalizing international business exchange.” Online: <http://www.jetro.go.jp/en/stats/survey/surveys/20050511_movement.pdf> (accessed April 14, 2007).
JETRO (2005g) “More foreign students remain in Japan to work,” Japan Economic Monthly, August. Online: <http://www.jetro.go.jp/en/market/trend/index/pdf/jem0508-3e1.pdf> (accessed April 14, 2007).
Jordan, T. F. (1996) “The future of foreign direct investment in Japan,” in M. Yoshitomi and E. M. Graham (eds.), Foreign Direct Investment in Japan, Cheltenham: Edward Elgar.
Jorgensen, D. W. and K. Motohashi (2004) “Potential growth of the Japanese and U.S. economies in the information age,” ESRI Discussion Paper Series No. 88, Economic and Social Research Institute, Cabinet Office. Online: <http://www.esri.go.jp/jp/archive/e_dis/e_dis090/e_dis088a.pdf> (accessed April 14, 2007).
Kawai, M. and S. Urata (1997) “Foreign direct investment in Japan: An empirical analysis,” CJES Research Paper 1997–3, Macquarie University, Sydney.
Kee, H. L., A. Nicita, and M. Olarreaga (2006) “Estimating trade restrictiveness indices,” CEPR Discussion Paper Series No. 5576, Centre for Economic Policy Research, London.
Keizai Doyukai (Japan Association of Corporate Executives) (2002) How to Make Japan a Place Where Non-Japanese People Want to Visit, Study, and Work. Online: <http://www.doyukai.or.jp/en/policyproposals/articles/pdf/021023.pdf> (accessed March 29, 2007).
Kimura, F. and K. Kiyota (2007) “Foreign-owned versus domestically-owned firms: Economic performance in Japan,” Review of Development Economics 11(1), 31–48.
Komiya, R. (1972) “Direct foreign investment in Japan,” in P. Drysdale (ed.), Direct Foreign Investment in Asia and the Pacific, Canberra: Australian National University Press.
Krugman, P. (1998) “It's baaack: Japan's slump and the return of the liquidity trap,” Brookings Papers on Economic Activity No. 2, 137–205.
Kushida, K. (2002) “The Japanese wireless telecommunications industry: Innovation, organizational structures, and government policy,” Stanford Journal of East Asian Affairs 2, 55–70. Online: <http://www.stanford.edu/group/sjeaa/journal2/japan1.pdf> (accessed March 12, 2007).
Kushida, K. (2006) “Japan's telecommunications regime shift: Understanding Japan's potential resurgence,” in A. Newman and J. Zysman (eds.) How Revolutionary was the Digital Revolution? National Responses, Market Transitions, and Global Technology in the Digital Era, Stanford, CA: Stanford University Press.
Lawrence, R. Z. (1993) “Japan's different trade regime: An analysis with particular reference to keiretsu,” Journal of Economic Perspectives 7(3), 3–19.
Lawrence, R. Z. (1994) “Japan's low levels of inward investment: The role of inhibitions on acquisitions,” in K. A. Froot (ed.), Foreign Direct Investment, Chicago: University of Chicago Press.
Lipsey, R. E. and F. Sjöholm (2004) “Host country impacts of inward FDI: Why such different answers?” EIJS Working Paper Series No. 192, The European Institute of Japanese Studies, Stockholm School of Economics. Online: <http://swopec.hhs.se/eijswp/papers/eijswp0192.pdf> (accessed April 26, 2007).
Magee, D. (2003) Turnaround: How Carlos Ghosn Rescued Nissan, New York: Harper Business.
Mahlich, J. (N.D.) “The impact of globalization on the Japanese pharmaceutical industry.” Online: <http://www.oru.se/oru-upload/Institutioner/Ekonomi%20statistik%20och%20informatik/Dokument/Forskning/Nationalekonomi/Mahlich.pdf> (accessed April 27, 2007).
Mason, M. (1987) “Foreign direct investment and Japanese economic development, 1899–1931,” Business and Economic History 16, 93–107.
Mason, M. (1992) American Multinationals and Japan: The Political Economy of Japanese Capital Controls, 1899–1980, Cambridge, MA: Council on East Asian Studies, Harvard University.
Mason, M. (1995) “Japan's low levels of inward direct investment: Causes, consequences and remedies,” in E. K. Chen and P. Drysdale (eds.) Corporate Links and Foreign Direct Investment in Asia and the Pacific, Sydney: Harper Collins.
McKinnon, R. and G. Schnabl (2003) “China: A stabilizing or deflationary influence in East Asia? The problem of conflicted virtue,” Working Paper 03–007, Economics Department, Stanford University. Online: <http://www-econ.stanford.edu/faculty/workp/swp03007.pdf> (accessed January 17, 2007).
McKinsey Global Institute (2000) Why the Japanese Economy is not Growing: Micro Barriers to Productivity Growth, Washington, DC.
METI (2000), “Summary of the 1999 Survey of Overseas Business Activities,” Ministry of Economy, Trade and Industry, Tokyo. Online: <http://www.meti.go.jp/english/statistics/downloadfiles/h2c400be.pdf> (accessed January 22, 2007).
METI (2006a) “The 39th Survey of Trends in Business Activities of Foreign Affiliates (Main Points),” Ministry of Economy, Trade and Industry, Tokyo. Online: <http://www.meti.go.jp/english/statistics/downloadfiles/h2c200he.pdf> (accessed March 12, 2007).
METI (2006b) “Summary of the 35th Survey on Overseas Business Activities,” Ministry of Economy, Trade and Industry, Tokyo. Online: <http://www.meti.go.jp/english/statistics/downloadfiles/h2c400he.pdf> (accessed March 12, 2007).
Ministry of Education, Culture, Sports, Science and Technology (2006), White Paper on Science and Technology 2006, Tokyo.
Mitsui Kaijo Kiso Kenkyujo (2001) Tainichi chokusetsu toshi zoka no riyu to Nihon keizai ni motarasu eikyo ni kan suru chosa [Survey on the reasons for the increase in FDI in Japan and the impact on the Japanese economy], Mitsui Kaijo Kiso Kenkyujo [Mitsui Kaijo Basic Research Institute], Tokyo. Online: <http://www.investment-japan.go.jp/research/index_h12.htm> (accessed March 12, 2007).
MITI, Tsusho Sangyo Seisakushi Hensan Iinkai Hen [MITI and Editing Committee of the History of Trade and Industrial Policy (eds.)] (1991) Tsusho sangyo seisakushi [The history of trade and industrial policy], Volume 8, Ministry of International Trade and Industry, Tokyo.
Miyajima, H., K. Haramura, and Y. Enami (2003) “Sengo nihon kigyo no kabushiki shoyu kozo: Antei kabunushi no keisei to kaitai” [The ownership structure of Japanese firms after the war: The emergence and dissolution of stable shareholdings], Financial Review 68, Policy Research Institute, Ministry of Finance, Tokyo. Online: <http://www.mof.go.jp/f-review/r68/r_68_203_236.pdf> (accessed January 15, 2007).
Motonishi, T. and H. Yoshikawa (1999) “Causes of the long stagnation of Japan during the 1990s: Financial or real?” Journal of the Japanese and International Economies 13(3), 181–200.
Muramatsu, S. (2001) “Foreign capital and the recent M&A environment in Japan,” in A. Holzhausen (ed.), Can Japan Globalize? Studies on Japan's Changing Political Economy and the Process of Globalization in Honour of Sung-Jo Park, Heidelberg: Physica-Verlag.
Nakamura, Y., K. Fukao, and M. Shibuya (1997) “Tainichi chokusetsu toshi wa naze sukunai ka? Keiretsu, kisei ga mondai ka?” [Why is FDI into Japan so small? Is it because of the keiretsu or because of regulations?], Tsusho Sangyo Kenkyusho Kenkyu Series [MITI Research Institute Study Series], No.31, Ministry of International Trade and Industry, Tokyo. Online: <http://www.meti.go.jp/mitiri/downloadfiles/m4331–1.pdf> (accessed January 15, 2007).
National Institute of Population and Social Security Research (2002) Population Projections for Japan: 2001–2050. Online: <http://www.ipss.go.jp/pp-newest/e/ppfj02/ppfj02.pdf> (accessed March 12, 2007).
National Institute of Population and Social Security Research (2006) “Nihon no shorai suikei jinko [Population projections for Japan],” December. Online: <http://www.ipss.go.jp/pp-newest/j/newest03/newest03point.pdf> (accessed March 29, 2007).
NLI Research Institute (2002) “Cross-shareholdings decline for the 11th straight year (FY2001 Survey).” Online: <http://www.nli-research.co.jp/eng/resea/econo/eco021001.pdf> (accessed February 16, 2007).
NLI Research Institute (2003) “The relationship of companies and banks as cross-shareholdings unwind – Fiscal 2002 cross-shareholding survey.” Online: <http://www.nli-research.co.jp/eng/resea/econo/eco031118.pdf> (accessed February 16, 2007).
NLI Research Institute (2004) “Mochiai jokyo chosa: 2003 nendo ban” [Survey of cross-shareholdings: FY 2003 Edition].” Online: <http://www.nli-research.co.jp/doc/mochiai03.pdf> (accessed February 16, 2007).
Nomura Soken Kenkyujo (2005) “Waga kuni ni okeru tainichi shinshutsu gaikoku kigyo no image ni kan suru chosa kenkyu [Survey regarding the image of foreign companies in Japan].” Online: <http://investment-japan.go.jp/research/H16–2/h16–2.pdf> (accessed April 14, 2007).
OECD (2001) Measuring Globalisation: The Role of Multinationals in OECD Economies, Paris: Organisation for Economic Co-operation and Development.
OECD (2003) OECD Economic Outlook, No. 73, June, Paris: Organisation for Economic Co-operation and Development.
OECD (2005a) Measuring Globalisation: OECD Economic Globalisation Indicators, Paris: Organisation for Economic Co-operation and Development.
OECD (2005b) Education at a Glance: OECD Indicators 2005, Paris: Organisation for Economic Co-operation and Development.
OECD (2006) OECD Economic Surveys: Japan, Paris: Organisation for Economic Co-operation and Development.
Okabe, K. (2001) “Are cross-shareholdings of Japanese corporations dissolving? – Evolution and implications,” Nissan Occasional Paper Series No. 33, Nissan Institute of Japanese Studies, Oxford University. Online: <http://www.nissan.ox.ac.uk/nops/nops33.pdf> (accessed February 16, 2007).
Poe, M., K. Shimizu, and J. Simpson (2002) “Revising the Japanese Commercial Code: A summary and evaluation of the reform effort,” Stanford Journal of East Asian Affairs 2, 71–95. Online: <http://www.stanford.edu/group/sjeaa/journal2/japan2.pdf> (accessed February 16, 2007).
Posen, A. S. (1998) Restoring Japan's Economic Growth, Washington, DC: Institute for International Economics.
Posen, A. S. (2001) “Recognizing Japan's rising potential growth,” NIRA Review, Winter. Online: <http://www.nira.go.jp/publ/review/2001winter/posen.pdf> (accessed April 2, 2007).
Posen, A. S. (2004) “What went right in Japan?” Policy Briefs 04–6, Institute for International Economics. Online: <http://www.iie.com/publications/pb/pb04–6.pdf>.
Pyo, H. K. and K. Nam (1999) “A test of the convergence hypothesis by rates of return to capital: Evidence from OECD countries,” CIRJE Discussion Paper CF-51, Center for International Research on the Japanese Economy, Faculty of Economics, University of Tokyo.
Ramstetter, E. D. (2001) “Labor productivity in foreign multinationals and local plants in Thai manufacturing, 1996 and 1998,” ICSEAD Working Paper Series 2001–31, The International Centre for the Study of East Asian Development, Kitakyushu.
Ramstetter, E. D. (2002) “Does technology differ in local plants and foreign multinationals in Thai manufacturing? Evidence from translog production functions for 1996 and 1998,” ICSEAD Working Paper Series 2002–04, The International Centre for the Study of East Asian Development, Kitakyushu.
Rapp, W. V. (1999), “Foreign firms in Japan's securities industry in the 1980s and post-bubble economy”, in R. Aggarwal (ed.), Restructuring Japanese Business for Growth: Strategy, Finance, Management and Marketing Perspectives, Boston: Kluwer Academic Publishers.
RECOF (2003), Nihon Kigyo no M&A Databook [M&A Databook of Japanese Companies], Tokyo: RECOF.
Riku, J. (2005) “Current situation for generic drugs in Japan”, Journal of Generic Medicines 2(3), 219–31.
Samuels, R. J. (1987) The Business of the Japanese State: Energy Markets in Comparative and Historical Perspective, Ithaca: Cornell University Press.
Sangyo Kenkyusho [Industry Research Institute] (1983) “Gaishikei seizogyo no ritchi no jittai ni kan suru chosa hokokusho” [Report on the actual situation of the location of foreign-owned manufacturing firms], Sangyo Kenkyusho.
Saxonhouse, G. (1993) “What does Japanese trade structure tell us about Japanese trade policy?” Journal of Economic Perspectives 7(3), 21–43.
Shaver, M. J., W. Mitchell, and B. Yeung (1997) “The effect of own-firm and other-firm experience on foreign direct investment survival in the United States, 1987–92,” Strategic Management Journal 18(10), 811–24.
Steindel, C. and K. Stiroh (2001) “Productivity: What it is, and why do we care about it?” Staff Report122, Federal Reserve Bank of New York.
Stiroh, K. (2001) “What drives productivity growth?” Federal Reserve Bank of New York Economic Policy Review 7(1), 37–60.
Tachibanaki, T. and R. Nagakubo (1997) “Kabushiki mochiai to kigyo kodo” [Shareholdings and enterprise behavior], Financial Review 43, Policy Research Institute, Ministry of Finance. Online: <http://www.mof.go.jp/f-review/r43/r_43_158_173.pdf> (accessed January 15, 2007).
Thomas III, L. G. (2001) The Japanese Pharmaceutical Industry: The New Drug Lag and the Failure of Industrial Policy, Cheltenham, UK: Edward Elgar.
Udagawa, M. (1990) “Business management and foreign-affiliated companies in Japan before World War II,” in T. Yuzawa and M. Udagawa (eds.), Foreign Business in Japan Before World War II: Proceedings of the Fuji Conference, Tokyo: University of Tokyo Press.
UNCTAD (1998) World Investment Report 1998: Trends and Determinants, Geneva: United Nations.
UNCTAD (2002) World Investment Report 2002: Transnational Corporations and Export Competitiveness, Geneva: United Nations.
UNCTAD (2003) World Investment Report 2003 – FDI Policies for Development: National and International Perspectives, Geneva: United Nations.
UNCTAD (2004) World Investment Report 2004: The Shift Towards Services, Geneva: United Nations.
UNCTAD (2005) Prospects for Foreign Direct Investment and the Strategies of Transnational Corporation, 2005–2008, Geneva: United Nations.
UNCTAD (2006) World Investment Report 2006 – FDI from Developing and Transition Economies: Implications for Development, Geneva: United Nations.
Wakasugi, R. (1994) “Why is FDI in Japan so small? An examination of the entry of foreign firms,” Yokohama National University Discussion Paper Series 94–4, Yokohama National University.
Wakasugi, R. (1995) “On the causes of low levels of FDI in Japan,” in E. K. Y. Chen and P. Drysdale (eds.), Corporate Links and Foreign Direct Investment in Asia and the Pacific, Sydney: Harper Collins.
Weinstein, D. (1996) “Structural impediments to investment in Japan: What have we learned over the last 450 years?” in M. Yoshitomi and E. M. Graham (eds.), Foreign Direct Investment in Japan, Cheltenham: Edward Elgar.
Weinstein, D. (1997) “Foreign direct investment and keiretsu: Rethinking U.S. and Japanese policy,” in Robert C. Feenstra (ed.), The Effects of U.S. Trade Protection and Promotion Policies, Chicago: University of Chicago Press.
Wilkinson, E. (1990) Japan versus the West: Image and Reality, Harmondsworth: Penguin.
Yamamura, K. (1986) “Japan's deus ex machina: Western technology in the 1920s,” Journal of Japanese Studies 12(1), 65–94.
Yoshino, M. Y. (1970) “Japan as host to the international corporation,” in C. P. Kindleberger (ed.), The International Corporation: A Symposium, Cambridge, MA: MIT Press.
Yoshitomi, M. and E. M. Graham (eds.) (1996) Foreign Direct Investment in Japan, Cheltenham: Edward Elgar.
Yuzawa, T. and M. Udagawa (eds.) (1990), Foreign Business in Japan before World War II: Proceedings of the Fuji Conference, Tokyo: University of Tokyo Press.