Do Keiretsu really hinder FDI into Japanese manufacturing?

Satomi Kimino, Nigel L. Driffield, David S. Saal

Research output: Working paper

Abstract

This paper examines an issue that has received a good deal of comment in the literature, but little analysis. It has been often argued that the presence of the Keiretsu in Japan has been instrumental in deterring multinational firms from entering Japan, though evidence for this is patchy. We therefore present some new analysis of this issue, evaluating the links between Keiretsu presence and inward investment penetration across sectors in Japan. We show that Keiretsu presence is associated with inward investment penetration. Once one allows for factors such as market structure, then Keiretsu attract rather than deter FDI. We further offer some explanation of why this may be, and contrast our findings with earlier work. RP0816.
Original languageEnglish
Place of PublicationBirmingham (UK)
PublisherAston University
VolumeRP0816
ISBN (Print)978-1-85449-738-3
Publication statusPublished - Nov 2008

Publication series

NameAston Business School research papers
PublisherAston University
No.RP0816

Fingerprint

Japanese FDI
Manufacturing
Keiretsu
Japan
Penetration
Factors
Multinational firms
Market structure

Keywords

  • Keiretsu
  • FDI
  • market structure

Cite this

Kimino, S., Driffield, N. L., & Saal, D. S. (2008). Do Keiretsu really hinder FDI into Japanese manufacturing? (Aston Business School research papers; No. RP0816). Birmingham (UK): Aston University.
Kimino, Satomi ; Driffield, Nigel L. ; Saal, David S. / Do Keiretsu really hinder FDI into Japanese manufacturing?. Birmingham (UK) : Aston University, 2008. (Aston Business School research papers; RP0816).
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Kimino, S, Driffield, NL & Saal, DS 2008 'Do Keiretsu really hinder FDI into Japanese manufacturing?' Aston Business School research papers, no. RP0816, Aston University, Birmingham (UK).

Do Keiretsu really hinder FDI into Japanese manufacturing? / Kimino, Satomi; Driffield, Nigel L.; Saal, David S.

Birmingham (UK) : Aston University, 2008. (Aston Business School research papers; No. RP0816).

Research output: Working paper

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AU - Driffield, Nigel L.

AU - Saal, David S.

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N2 - This paper examines an issue that has received a good deal of comment in the literature, but little analysis. It has been often argued that the presence of the Keiretsu in Japan has been instrumental in deterring multinational firms from entering Japan, though evidence for this is patchy. We therefore present some new analysis of this issue, evaluating the links between Keiretsu presence and inward investment penetration across sectors in Japan. We show that Keiretsu presence is associated with inward investment penetration. Once one allows for factors such as market structure, then Keiretsu attract rather than deter FDI. We further offer some explanation of why this may be, and contrast our findings with earlier work. RP0816.

AB - This paper examines an issue that has received a good deal of comment in the literature, but little analysis. It has been often argued that the presence of the Keiretsu in Japan has been instrumental in deterring multinational firms from entering Japan, though evidence for this is patchy. We therefore present some new analysis of this issue, evaluating the links between Keiretsu presence and inward investment penetration across sectors in Japan. We show that Keiretsu presence is associated with inward investment penetration. Once one allows for factors such as market structure, then Keiretsu attract rather than deter FDI. We further offer some explanation of why this may be, and contrast our findings with earlier work. RP0816.

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Kimino S, Driffield NL, Saal DS. Do Keiretsu really hinder FDI into Japanese manufacturing? Birmingham (UK): Aston University. 2008 Nov. (Aston Business School research papers; RP0816).