Global Markets and Japan's Industrial Growth

The integration of the Japanese economy with the global markets is the most important aspect for industrial growth in Japan where potential domestic demand is not expanding. The issues on how the internationalization of Japanese firms via exports and foreign direct investment (FDI) influence domestic employment, innovation and industrial growth still remain as research subjects, while studies on the stylized facts of the internationalization of Japanese firms (i.e. export, outward FDI, and offshore outsourcing) and the factors to accelerate it have been aggregated so far. In addition, there are few studies that investigate the effect of the entry of foreign firms into the Japanese market through the transaction of goods, services, and technology, and inward FDI on Japanese industries. This project focuses on the following subjects: (1) the entry of foreign firms, the Japanese market environment, and industrial growth in Japan; (2) the effects of firms' networks and offshoring, tax systems, and research and development (R&D) on the internationalization and growth of Japanese firms; and (3) the effect of the growing production level of Japanese firms in China on economic growth in both China and Japan. The research results in this project are expected to contribute insightful knowledge for industrial policymaking.

April 22, 2013 - March 31, 2015