JAPAN'S DIRECT MANUFACTURING INVESTMENT IN THE UNITED STATES

Kang‐Tsung Chang

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International Business and FDI Global trade and economics Regional Economics and Spatial Analysis

Abstract

Japan is the most important foreign investor in the United States. Japanese companies are trade-oriented and have ownership-specific advantages in select industries; their US investment is aimed at protecting their market share. The distribution of Japanese plants correlates well with US manufacturing, except that the West Coast and states that aggressively sought Japanese investment have more employees in Japanese plants. Japanese presence in US manufacturing is most prominent in consumer electronics, steel, automobiles, and high-technology industries.

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