ABSTRACT
Since the mid-1980s Japan has been one of the major sources of direct investment to the rest of the world, as many Japanese firms in the manufacturing and service sectors internationalised their operations and established a global network of subsidiaries. This important phenomenon had a significant impact on both Japan and host countries and an extensive literature developed to explain both the industrial and geographical distribution of investment. Generally, discussion has been in terms of the firm-specific, industry-specific and locational factors which influenced the pattern of investment. Nevertheless, examination of motivations and determinants of Japanese foreign direct investment (FDI) has been held back by the limitations of the available statistical database.
