TY  - JOUR
AU  - Weinstein, David E
TI  - Foreign Direct Investment and Keiretsu: Rethinking U.S. and Japanese Policy
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 5612
PY  - 1996
Y2  - June 1996
DO  - 10.3386/w5612
UR  - http://www.nber.org/papers/w5612
L1  - http://www.nber.org/papers/w5612.pdf
N1  - Author contact info:
David Weinstein
Columbia University
Department of Economics
420 W. 118th Street
MC 3308
New York, NY  10027
Tel: 212/854-6880
Fax: 212/854-8059
E-Mail: dew35@columbia.edu
M1  - published as David E. Weinstein. "Foreign Direct Investment and Keiretsu: Rethinking U.S. and Japanese Policy," in Robert C. Feenstra, editor, "The Effects of U.S. Trade Protection and Promotion Policies" University of Chicago Press (1997)

AB  - This paper focuses on two issues.  First, a reexamination of the data on the level of foreign direct investment (FDI) in Japan suggests that foreign firms sell five to six times more in Japan than is commonly believed.  Previous studies severely underestimated the stock of FDI in Japan due to poor data. Second, after finding that even after adjusting for various factors the level of FDI in Japan is still low, the paper explores explanations for this phenomenon.  A second main conclusion is that government tax and financial policy continues to inhibit foreign takeovers through the promotion of stable shareholding.
ER  -