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This paper aims to establish a new statistical framework for measuring global flow of funds (GFF) based on its inherent mechanisms. It advances a previous theoretical discussion and develops a practical operational statistical matrix. Based on theoretical and practical possibilities the paper gets existing data from the International Investment Position, the Coordinated Direct Investment Survey, the Coordinated Portfolio Investment Survey, and International Banking Statistics are integrated for measuring GFF. The main outcome is a prototype GFF matrix that includes stock data geographically disaggregated by country/region and selected financial instruments. The paper presents a GFF Matrix compiled with the pattern of 'Country vis-à-vis Country' matrix, and through using the GFF matrix to analyze the basic status, mutual relationship and existing problems between China, Japan, and the United States in the external financial positions. [ABSTRACT FROM AUTHOR]

This paper analyzed how South Korea’s intra-industry trade (IIT) with her major trading countries (i.e., China, the USA, and Japan (CUJ)) in the manufacturing sector changed over time for the period of 1994–2011. It was found that South Korea’s IIT with China mainly increased through economies of scale (ES), the ratio of inward and outward foreign direct investment to total investment (FDI), the ratio of intermediate cost to total cost (II), and R&D intensity (RD). On the other hand, South Korea’s IIT with the USA was found to mainly increase through ES, FDI, and RD. Finally, RD, FDI, and II variables are found to be the most important determinants for South Korea’s IIT with Japan. [ABSTRACT FROM AUTHOR]

This study revisits the nexus between foreign direct investment (FDI) and international trade in the dynamic perspective, focusing on intermediate goods imports of affiliates of Japanese firms operating in China. To examine the effect of the formation of the agglomeration and the recent FDI made by small firms, both of which have been overlooked in the literature, we construct a unique parentaffiliate matched panel data set of trade in intermediate goods, and estimate a discrete-time hazard model over the 2000-06 period. We found that affiliates owned by firms in agglomerated regions in Japan have a shorter duration of trade in intermediate goods compared with affiliates owned by smaller Japanese firms. [ABSTRACT FROM AUTHOR]

This paper analyzes aggregate return to capital statistics for China, the United States, and Japan in order to investigate the causes of an unusually high investment rate and increasing foreign direct investment (FDI) inflows to China. We also analyze labor's share of output and capital-output ratio statistics to predict future trends in the return to capital in China. Our findings allow us to come to four conclusions: (1) China's high investment rate corresponds to a high return to capital in the country, just as high investment rates in the United States and Japan historically correspond to a high return to capital. (2) A comparatively higher return to capital attracted FDI to China. (3) Investment rates among these three countries show no signs of convergence so far. These differences will likely persist, encouraging FDI to continue to flow into China in near future. (4) The return to capital in China will likely decrease in the long run, as the experiences of Japan and the United States indicate, but will only decrease and become stable after a certain level of capital stock and development is reached. [ABSTRACT FROM AUTHOR]

This paper presents an empirical investigation of the location decision structure of Japanese investors in China. In this study, a nested logit model and rich Japanese firm-level greenfield manufacturing foreign direct investment data are calibrated together. This examination is not only driven by the unsatisfactory model specification of the conditional logit model in previous location choice analyses, specifically the violation of the independence from irrelevant alternatives assumption; but is also driven by the urgent need to better understand foreign investors’ in general and Japanese investors’ in particular location decision structure in China. Two potential hierarchical and sequential location decision-making structures of Japanese investors are then tested, which are respectively in line with the spatial divide of China's FDI preferential policies and with China's six traditional census areas. [ABSTRACT FROM AUTHOR]

This paper analyses the Trilateral Investment Agreement (TIA), the Bilateral Investments Agreements ("BITs") and the BIT programme concluded among China, Japan, and Korea. The relative weight of the outgoing direct investment among these three countries has continuously and sharply increased. Japanese and Korean BITs focus on seeking to liberalize as well as protect their overseas investment due partly to the relatively small domestic markets. China has largely embraced global norms of the treatment of foreign direct investment (FDI) but still takes a more defensive posture than Japan or Korea on the conclusion of BITs. While these three countries has taken an important, albeit symbolic, step for regionalism in deciding to conclude a trilateral investment agreement, BITs still play a very important role so far. This paper examines these three countries' substantive clauses on the protection of FDI under BITs and the TIA. It conducts a comparative and qualitative research, an approach not seen in existing literature, on the investment treaty protections offered by three East Asian countries. This research would be useful for the further development of IIAs or FTAs among these countries, especially for China in light of its relative weaker investment protection. [ABSTRACT FROM AUTHOR]

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Japan has been the largest source country of foreign direct investment (FDI) in China, excluding overseas Chinese territories and tax havens. However, Japan's large-scale but relatively closed production networks have received little discussion in previous research. Two peaks in Japanese investment can be distinguished: the first led by the electronics industry in the mid-1990s and the second by the automotive industry after 2003. Cross-border production network building in the electronics industry is quite different from the scenarios of conventional global production networks (GPN) theory, where leading firms dominate the building of global production networks. In this paper, I demonstrate that in the development of the electronics industry, the institutional advantage small and medium enterprises have of knowing how to operate production bases in Southern China has enabled them to guide leading firms in building cross-border production networks. [ABSTRACT FROM PUBLISHER]

This paper integrates institution-, industry-, and resource-based views of internationalization and demonstrates that industrial characteristics, firm resources, and institutional factors can significantly explain the differences and similarities of international expansion of Chinese and Japanese multinational enterprises (MNEs). In particular, this paper maps the growth of Chinese MNEs since economic reforms in 1978 and that of Japanese MNEs after World War II. We illustrate the similarities and differences between Chinese and Japanese MNEs with two case studies: foreign direct investment (FDI) of Haier and Matsushita. We suggest that how firms internationalize, in addition to being influenced by industry- and resource-based considerations, is inherently shaped by the domestic and international institutional frameworks governing these endeavors. [ABSTRACT FROM AUTHOR]

This paper examines the growing trend of Chinese foreign direct investments (FDI) into Japan. The primary purpose of this study is to investigate the patterns and characteristics of the Chinese mergers and acquisitions (M&As) in Japan in terms of motives, investment aims and the nationality composition of the post-M&A management team. By investigating the Chinese outward FDIs to Japan, since the initiation of the "Going out" strategy in 2000, we attempt to identify the motives and post-acquisition ownership structure of these M&As. We also reflect our findings on the contemporary empirical research on Chinese outward FDI. Our results suggest that the Chinese M&As in Japan are a result of well-considered investment decisions, which seems to follow a conscious strategy of aiming for strategic assets and resources used to strengthen the competitive position or attain a superior competitive advantage, on the Chinese home market. [ABSTRACT FROM AUTHOR]

The paper presents an analysis of the economic relationship between the two most important economies in Asia. Over the last decades, the Chinese and Japanese economies have become more economically interdependent, a development which will, in the long run, impact the countries' political relationship. The paper seeks to answer the question: How can China and Japan gain from the current economic situation, further enhance their relationship and increase their synergies for regional economic development? Data on trade and Foreign Direct Investment are used in combination with primary data from interviews with Japanese and Chinese companies on how they perceive the current business situation and future potential. The result of the data analysis shows that the countries have much to gain from their economic interdependence. The firms see great potential in their respective markets but are concerned about political turbulence. Three possible scenarios for the future economic relationship are presented, including fierce competition on all markets and a leveraging of resources for mutual development between Chinese and Japanese companies. [ABSTRACT FROM AUTHOR]

The economic zone of Rajin-Seonbong (Raseon) is located at the north-eastern border of North Korea, adjacent to China and Russia. Although its attractiveness to foreign investors has remained limited since its creation in 1991, Raseon is of growing interest as a transit port for Russian and Chinese trade. This paper reviews some theories on the constraints and advantages of remotely located ports, arguing that limited economic base can be overcome by a strategy based on transhipment flows to and from China, South Korea, Russia and Japan. In particular, it develops the idea that economic factors, such as remoteness from the nation’s core region, are not sufficient to explain the uneven success of the project. More likely is the mismatch between local industries and port facilities. Unlike the Chinese free-trade zone experiment, port and logistics development in North Korea may take place prior to industrial development, strengthening Raseon as a potential gateway and growth pole in Northeast Asia. [ABSTRACT FROM AUTHOR]

Based on data of the manufacturing sector of China and Japan from 2003 to 2016, this paper attempts to measure the progresses in energy-biased technology and energy efficiency by constructing a threshold panel regression model with variables including foreign direct investment (FDI) and energy consumption structure to explain energy efficiency using energy-biased technology as the key explaining variable. The estimation indicates significant differences in the energy efficiency of China's and Japan's manufacturing industries. In general, Japan's total energy efficiency is higher than China's. The industry with more intensive technology has higher energy efficiency which rises much faster. The paper finds that the energy efficiency of China's manufacturing sector shows an upward trend in general, while Japan's fluctuates more, showing two peaks and two troughs. Our empirical results show that there is a threshold value of progress in energy-biased technology; below this, progress in energy-biased technology will have a positive effect on energy efficiency and beyond it, the effect will be negative. Since this effect is not one-way, we define it as a 'double-edged effect'. It is estimated that the level of energy-biased technology progress of most manufacturing industries in China is below the threshold value, indicating that the technology progress in China's manufacturing sector has not been excessively biased towards energy consumption, and the impact on energy efficiency is still positive. The China-Japan comparison shows that the threshold value for Japan's manufacturing sector is significantly lower than that for China's, indicating a marginal effect on the 'double-edged effect': The threshold value will decrease when energy efficiency reaches a certain level. Therefore, it is necessary to offset these negative externalities from technological progress with other factors such as by increasing FDI and improving energy consumption structure. • This paper examines the influence of energy-biased technological progress alone on energy efficiency. • It proves the influence of energy-biased technological progress on energy efficiency to be nonlinear. • It measures the energy-biased technological progress and energy efficiency of some industries of the manufacturing sector of China and Japan. • It proves the rebound effect to be conditional in the manufacturing sector of China and Japan. • It also proves the threshold effect in the influence of energy-biased technological progress on energy efficiency. [ABSTRACT FROM AUTHOR]

This article attempts to reconcile previous conflicting findings about the effects of labour cost on the location decisions of foreign investors in China. A conditional logit model is calibrated with its compatible disaggregated firm-level Japanese FDI data. It is hypothesised that previous counter-intuitively positive relationships between labour cost and incoming FDI in China may result from the failures to properly control spatial inflation differentials, labour quality, and quality of life. A Hausman-McFadden test is also conducted to test the robustness of the calibrated models. [ABSTRACT FROM AUTHOR]

We argue in this paper that in the WTO regime the role of efficiency seeking FDI and location advantages are likely to emerge more important. A primary survey was conducted and the Japanese MNEs were asked to assess location advantages for India in relation to China and the East Asian countries. The results support the earlier studies on the importance of infrastructure development in attracting FDI hut do not back the emphasis on controls and administrative complexities. [ABSTRACT FROM AUTHOR]

Examines foreign direct investment of Japan in China. Reason Japanese firms are reluctant to invest in China; Economic theories on cross-border movement of capital; Economic complementarities between the two countries.

The objective of this research is to analyze the geographical distribution of the research and development (R&D) collaboration of Japanese multinational enterprises (MNEs) in China. We analyze location strategies of overseas R&D activities on a regional instead of a national level. We first discuss the linkage of foreign direct investment (FDI) and ensue knowledge spillovers from MNEs to a host country, and further analyze how the knowledge spillovers influence MNEs in making their decisions on location choices in China. Using conditional logit estimation from U.S. patent data, we find that Japanese MNEs are in proximity to the R&D-intensive locations and to the clustering of Japanese MNEs, but have a tendency to keep a distance from R&D-competitive locations that would be endangered by outward knowledge spillovers. In addition, small and medium MNEs are influenced more by location factors, such as R&D and FDI, than large MNEs. So are capital-intensive MNEs than non-capital-intensive MNEs. [ABSTRACT FROM AUTHOR]

Along with the growing prominence of China in corporate strategy and decision-taking, Japanese firms are increasingly aligning their activities to accommodate the shift towards a customer-led market environment and the advent of a major consumer market on Japan's doorstep. This study shows how Japanese firms adjust their marketing to changes in Chinese consumption patterns and address the impact of geographical and socioeconomic variables on innovation diffusion. By taking a fresh look at the marketing challenges amidst latent consumer ethnocentrism and cosmopolitanism, this study generates fresh insights into the reconfiguration of Japanese marketing and retailing activities in this emergent market. [ABSTRACT FROM AUTHOR]

This study investigates the effectiveness of Japan's official development assistance in promoting foreign direct investments inflows in the case of the People's Republic of China. Conditional logit analysis using province level statistics from 1980 to 1999, shows that Japanese aid flows did have a significant positive impact on private investors location choice even though other profit-maximizing factors such as the level of economic activity had a leading spillover effect. In a context of growing scarcity of aid, the study concludes by asserting the importance of a complementary process in which foreign aid is aimed at enhancing the development of infrastructures, acting as a prerequisite for future direct investments. Finally, Japan providing an interesting case study, we stress the need for a better cooperation between public and private sectors in development assistance programmes. [ABSTRACT FROM AUTHOR]

Japanese private investors have recently established a remarkable presence in the Chinese economy While the comparative performance of Japanese direct investment can be attributed to managerial, economic, social and political factors, the present article shows that elements of Japanese culture have also played a role An intercultural comparative analytical framework is developed Aggregate data and survey reports suggest that Japanese cultural factors have contributed to the performance of Japanese direct investment (1985- 1993), relating to level, pattern and managerial behavior This study points to 1) the importance of having a comprehensive understanding of Japanese direct investment including its cultural element, and 2) the necessity for the Western investors to pay close attention to the cultural aspect of a successful investment in China [ABSTRACT FROM AUTHOR]