The Motivation and Potential of Japan's Outward Direct Investment 
in Asia:An Empirical Analysis Based on the Extensive Gravity Model

doi:10.14156/j.cnki.rbwtyj.2019.01.005

Abstract

Abstract: In recent years, Japan’s outward direct investment has been growing, but its outward direct investment in Asia has stagnated. An examination of Japan’s outward direct investment in 11 Asian countries (regions) has found that, first of all, the scale of GDP, both of the home country and the host country, has a positive effect on Japan’s OFDI in Asia. The distance between the home country and the host country has a negative effect on Japan’s OFDI in Asia. Secondly, the motives of Japan’s OFDI in Asia are marketingseeking, efficiencyseeking and resourceseeking, but the motive of strategic assetseeking is not obvious. Thirdly, Japan’s OFDI favors Asian countries with better institutional environment. In addition, by simulating investment potential based on the regression result, the 11 host countries (regions) can be divided into three categories: (1) mature investment potential countries, which includes Singapore, South Korea, Thailand, and Vietnam; (2) growing investment potential countries (regions), which include Hong Kong and Philippines; (3) developing investment potential countries (regions), which includes China, Taiwan, India, Indonesia, and Malaysia.

Key words: Japan, investment motivation, Gravity Model, PPML

CLC Number:

F753/757

ZHENG Lei，ZHU Ning. The Motivation and Potential of Japan's Outward Direct Investment in Asia:An Empirical Analysis Based on the Extensive Gravity Model[J]. JAPANESE RESEARCH, 2019, 33(1): 44-57.

References

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The Motivation and Potential of Japan's Outward Direct Investment in Asia:An Empirical Analysis Based on the Extensive Gravity Model

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