Japanese Foreign Direct Investment and Regional Trade

Author/Editor:

Gabrielle Lipworth ; Tamim Bayoumi

Publication Date:

August 1, 1997

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

We examine the relationship between Japanese FDI outflows, domestic and foreign fixed investment, and the exchange rate. The results indicate that aggregate FDI outflows have been driven by investment in Japan and the exchange rate, while the geographic distribution of such investment has been influenced by foreign economic conditions. We also find that FDI outflows have a temporary impact on exports but a permanent effect on imports. We find no evidence that behavior with respect to East Asia differs from that with respect to North America or Europe.

Series:

Working Paper No. 1997/103

Subject:

Balance of payments Exports Financial institutions Foreign direct investment Foreign exchange International trade Real exchange rates Stocks Trade balance

English

Publication Date:

August 1, 1997

ISBN/ISSN:

9781451948165/1018-5941

Stock No:

WPIEA1031997

Pages:

35

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