Foreign Direct Investment in Japan: A review of the empirical literature

Author Name KIYOTA Kozo  (Faculty Fellow, RIETI)
Creation Date/NO. June 2014 14-P-007
Research Project Competitiveness of Japanese Firms: Causes and Effects of the Productivity Dynamics
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This paper surveys the recent literature that empirically examines foreign direct investment (FDI) in Japan. This paper focuses on the quantitative evidence on the following questions: 1) Did FDI in Japan accelerate economic growth? 2) What are limiting factors for FDI in Japan? 3) Are there any differences between foreign-owned firms and Japanese-owned firms? 4) Why is the productivity of foreign-owned firms high? 5) Do foreign-owned firms undergo massive restructuring? 6) Does the entry of foreign-owned firms cause severe competition? 8) Are there any spillover effects from foreign-owned firms to domestic firms? This paper summarizes the facts and issues on FDI in Japan.