Determinants of Japanese direct investments in selected BIMP-EAGA countries

Kassim bin Hj. Mansor, and Furuoka, Fumitaka * and Lim, Beatrice Fui Yee and Phang, Grace (2007) Determinants of Japanese direct investments in selected BIMP-EAGA countries. Sunway Academic Journal, 4. pp. 74-84.

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Abstract

This paper uses panel data analysis to identify how Japanese multinational corporations (MNCs) allocate their investments in the selected BIMP-EAGA countries (i.e. Malaysia, Indonesia and the Philippines). The paper hypothesizes that the following six elements would influence the inflow of Japanese Direct Investments (JDI) into the area: country?s market size, growth rate of market size, per capita income, trade deficit, inflation rates and political condition. The main findings from the panel data analysis are that there is a significant relationship between Japanese direct investments and political condition in the recipient countries. The inflows of Japanese investment tend to decrease as the political risk increases. It means that Japanese MNCs tend to allocate more investments into the countries with better political condition.

Item Type: Article
Additional Information: Authors affiliated to Universiti Malaysia Sabah.
Uncontrolled Keywords: foreign direct investment; ASEAN; Japan; multinational corporation
Subjects: H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HG Finance
Divisions: Others > Non Sunway Academics
Depositing User: Administrator Admin
Date Deposited: 15 Oct 2012 07:05
Last Modified: 10 May 2019 08:27
URI: http://eprints.sunway.edu.my/id/eprint/40

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