Assessing Foreign Direct Investment Relationships Between Japan, the People's Republic of China, and the United States
Greaney, Theresa M.; Li, Yao | November 2009
Abstract
The People's Republic of China (PRC) has received enormous inflows of foreign direct
investment (FDI) in recent years, including significant flows from Japan and the United
States (US). We examine these investment flows in detail to gain perspectives on their
relative importance for the three countries involved. We also analyze the industrial
composition of FDI flows over time. US FDI flows to the PRC have been less concentrated in
manufacturing than average for investors in the PRC while Japan’s FDI flows have been
much more concentrated in manufacturing, particularly in transport, electrical, and machinery
industries in recent years. Using survey data from American and Japanese affiliates, we
compare the employment patterns and sales destinations of American and Japanese
affiliates in the PRC. We find a much higher degree of export-orientation for Japanese
affiliates than American affiliates, with the latter tending to make the vast majority of their
sales in the PRC's market. Over time, however, we find a tendency towards convergence in
the sales destinations of Japanese and American affiliates.
Citation
Greaney, Theresa M.; Li, Yao. 2009. Assessing Foreign Direct Investment Relationships Between Japan, the People's Republic of China, and the United States. © Asian Development Bank. http://hdl.handle.net/11540/3749. License: CC BY 3.0 IGO.Keywords
Project Evaluation & Review Technique
Operations Evaluation
Evaluation
World Trade
Trade Volume
Trade Promotion
Trade Flows
Trade Development
Patterns Of Trade
Resources evaluation
Input output analysis
Import volume
Export volume
Export Development
Economic agreements
International market
Import policy
Export policy
Participatory monitoring and evaluation
Participative management
Foreign trade routes
Trade routes
Foreign trade and employment
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