ABSTRACT
This chapter provides empirical analysis on the inward and outward FDI of Japan. The characteristics and policies of FDI will first be described, followed by a discussion of the role of Japanese outward FDI in the recent development of production networks in the East Asian region (Section 2) in more detail. Then we demonstrate how inward and outward FDI affects Japanese firms, using firm-level data for the manufacturing sector (Sections 3 and 4). Finally, we will discuss policy implications from the analysis (Section 5).
