IMF Working Papers

Production Offshoring and Investment by Japanese Firms

By Joong S Kang, Shi Piao

July 30, 2015

Download PDF

Preview Citation

Format: Chicago

Joong S Kang, and Shi Piao. Production Offshoring and Investment by Japanese Firms, (USA: International Monetary Fund, 2015) accessed November 8, 2024
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 trace Japanese corporate investment across different types of firms over the past decades and estimate the main determinants of investment. We find that there are differences in investment behavior between firms expanding abroad and those operating mainly in domestic markets. On the back of a trend increase in production offshoring, investment by large companies, especially those in the transportation sector, is more positively associated with cash flow while responding less to Q ratio. These findings are consistent with the subdued recovery of private investment in recent years despite booming stock markets and the large build up of cash holdings by Japanese corporates.

Subject: Corporate investment, Currencies, Economic sectors, Financial crises, Global financial crisis of 2008-2009, Manufacturing, Money, National accounts, Private investment

Keywords: Bank borrowing, Capital, Corporate investment, Currencies, Economic growth, Expectations of demand growth, Firm, Firms in the transportation sector, Global, Global financial crisis of 2008-2009, Investment, Investment behavior, Japan, Japanese firm, Leverage ratio, Manufacturing, Offshoring, Private investment, WP

Publication Details

  • Pages:

    20

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2015/183

  • Stock No:

    WPIEA2015183

  • ISBN:

    9781513557298

  • ISSN:

    1018-5941

You May Also Be Interested In...

Colombia: Technical Assistance Report-Report of the Diagnostic Mission on Macro-relevant Climate Change Statistics (July 17–21, 2023)

November 8, 2024

Vietnam: Technical Assistance Report-Report on Residential Property Price Index Mission (April 22-26, 2024)

November 8, 2024

Republic of Tajikistan: Technical Assistance Report-Public Investment Management Assessment with the Climate Module

November 8, 2024

South Africa: Technical Assistance Report-Report on the Compilation of Energy and Air Emissions Accounts Mission (June 10-14, 2024)

November 8, 2024