Imitated or ignored? Foreign Firms in Japan
Inward foreign direct investment (FDI) has often been touted as a possible source of economic growth for Japan. For years, economists have argued that an influx of foreign capital and operations would have a positive effect, not only due to a direct increase in competition, but also as a result of the more indirect effects of knowledge spillovers from foreign firms to domestic competitors. To the extent that some foreign firms had superior techniques that enabled them to take market share away from indigenous Japanese firms, it was hoped that this competitive pressure would induce Japanese firms to emulate them, just as American and European companies have felt compelled to emulate the best practices of foreign firms coming to their soil.
Inward FDI into Japan is so low— standing at one-third the level of Korea and China, and one-tenth the level of OECD countries—that promoting it would seem to be a case of “low hanging fruit.” Little wonder that the Abe Cabinet has set an official target of doubling inward FDI to ¥35 trillion ($330 billion) by the year 2020.
Amending Japan’s Pacifist Constitution
Summary Japan’s 1947 constitution has lasted longer without amendment than any other constitution in the world. It has been called the “pacifist constitution” because of Article 9’s renunciation of war. […]
Japan`s Policy towards the South China Sea – Applying “Proactive Peace Diplomacy”?
Japan’s policy towards the South China Sea (SCS) is likely to have a considerable bearing on the future shape of the regional order in this region although ultimately US-China competition […]
The forgotten success story: Japan and the methamphetamine problem
This paper examines Japan’s policy towards methamphetamine (Japanese: hiropon). Opium has been used in Japan for medicinal purposes since 1722. However, it was strictly controlled. The result was that drug […]
The Great Rejuvenation? China’s Search for a New ‘Global Order’
Executive Summary This Asia Paper explores how China, a ‘partial’ global power, can set the agenda and determine the rules in a global order dominated by a declining yet unyielding […]
How Can 2017 be a New Boost on China-Vietnam Relations over the South China Sea?
In China’s foreign relations regarding the South China Sea (SCS) Issues, Vietnam is undoubtedly one of the key countries that China has to face and need to be handled well […]
Unravelling the Intentions Behind the 7th Congress of the Workers’ Party of Korea
What is the strategy behind the recent events in North Korea, and how will the 7th Congress of the Workers’ Party of Korea affect future developments?