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Recent Developments in American and European Direct Investment in Post-Bubble Japan: Contrasting Perspectives

  • Peter J. Buckley
  • Hafiz Mirza
  • John R. Sparkes
Chapter

Abstract

Although Japan’s trade surplus with the U.S. and Europe tends to gain the headlines, the country also has a sharp imbalance in terms of capital flows, not least in Foreign Direct Investment (FDI). Indeed, in recent historical terms, the trend of foreign investment between the U.S. and Japan has been towards greater imbalance. Between 1980 and 1990 U.S. direct investment in Japan rose by 210% from a minimal level in 1980 to $19.3 billion in 1990. This pales in comparison with Japanese investment in the U.S. which grew steadily over the same decade from $4.2 billion in 1980 to $70 billion in 1990. In comparison, Japanese investment in Europe over the decade increased from $4.7 billion to $45 billion, exceeding the flow of European investment into Japan by a ratio of 25:1 (EBC, 1992).

Keywords

Foreign Direct Investment Direct Investment Joint Venture Foreign Firm Japanese Market 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media New York 1999

Authors and Affiliations

  • Peter J. Buckley
    • 1
  • Hafiz Mirza
    • 2
  • John R. Sparkes
    • 2
  1. 1.University of LeedsLeedsUK
  2. 2.University of BradfordWest YorkshireUK

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