Japanese Foreign Direct Investment and Regional Trade
IMF Working Papers, August 1, 1997
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- Japanese Foreign Direct Investment and Regional Trade
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Bibliographic details
- Authors: Gabrielle Lipworth, Tamim Bayoumi
- Published: August 1, 1997
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451948165.001
Summary
- Authors: Gabrielle Lipworth, Tamim Bayoumi
- Date: August 1, 1997
- Short summary: The paper examines the relationship between Japanese FDI outflows, domestic and foreign fixed investment, and the exchange rate. Key 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. FDI outflows have a temporary impact on exports but a permanent effect on imports. No evidence is found that behavior with respect to East Asia differs from that with respect to North America or Europe.
Major findings
- Aggregate FDI outflows are driven by:
- investment in Japan
- the exchange rate
- Geographic distribution of FDI outflows is influenced by:
- foreign economic conditions
- Trade impacts of FDI outflows:
- temporary impact on exports
- permanent effect on imports
- Regional behavior:
- no evidence that behavior with respect to East Asia differs from that with respect to North America or Europe
Subject coverage and keywords
- Subjects: Balance of payments, Exports, Financial institutions, Foreign direct investment, Foreign exchange, International trade, Real exchange rates, Stocks, Trade balance
- Keywords: Asia and Pacific, East Asia, Exports, FDI, FDI flow, FDI inflow, FDI outflow, FDI regression, FDI stock, Foreign direct investment, Hollowing Out, North America, Northern Europe, Real exchange rates, stock of FDI, Stocks, Trade balance, Trade Linkages, WP
Content in this bundle
- Japanese Foreign Direct Investment and Regional Trade - WP/97/103