Do Keiretsu really hinder FDI into Japanese manufacturing?

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

Research output: Preprint or Working paperWorking paper


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
ISBN (Print)978-1-85449-738-3
Publication statusPublished - Nov 2008

Publication series

NameAston Business School research papers
PublisherAston University


  • Keiretsu
  • FDI
  • market structure


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