Japanese Foreign Direct Investment and Regional Trade

35 Pages Posted: 15 Feb 2006

See all articles by Tamim Bayoumi

Tamim Bayoumi

International Monetary Fund (IMF); Centre for Economic Policy Research (CEPR)

Gabrielle Lipworth

affiliation not provided to SSRN

Date Written: August 1997

Abstract

We examine the relationship between Japanese FDI outflows, domestic and foreign fixed investment, and the exchange rate. The 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. We also find that FDI outflows have a temporary impact on exports but a permanent effect on imports. We find no evidence that behavior with respect to East Asia differs from that with respect to North America or Europe.

Keywords: FDI, Hollowing Out, Trade Linkages

JEL Classification: F21, F15

Suggested Citation

Bayoumi, Tamim and Lipworth, Gabrielle, Japanese Foreign Direct Investment and Regional Trade (August 1997). IMF Working Paper, Vol. , pp. 1-35, 1997. Available at SSRN: https://ssrn.com/abstract=882625

Tamim Bayoumi (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States
202-623-6333 (Phone)
202-623-4795 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Gabrielle Lipworth

affiliation not provided to SSRN

No Address Available

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