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.
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 […]
Remorse and Reform: Abe’s Stormy Spring
From apologizing for Japan’s wartime past to collective defense and FTA negotiations with the United States, Japan faces a number of contentious issues in the coming months that call into […]
Human Rights in China
Summary The People’s Republic of China (PRC) has chosen to promote collective rights such as the right to development. The PRC can improve human rights conditions further. However, due to […]
Xi Jinping’s Foreign Policy toward North Korea
Proceedings from the 2016 NAJAKS Conference at Stockholm University, Nordic Association of Japanese and Korean Studies.
Pyongyang’s ‘weapons first, negotiations later’ strategy
On 9 September 2016, the US Geological Survey detected a 5.3-magnitude earthquake in the area of North Korea’s Punggye-ri underground test site. Four hours later, North Korean state television announced that […]