Economic development of China and change in the interdependence between Japan and China through the foreign direct investment of Japanese firms

点击翻译按钮获取中文摘要

Using an econometric model of Japan-China-Korea and the Japan-China international input-output table, we investigated the effects of the foreign direct investment of Japan in China. Overseas production in China increased the mutual trade between both countries, especially in machinery sectors. The production shift from Japan to China has lager negative impacts in case of the motor and parts sector than in case of the electric and general machinery sectors. The energy saving investment in Japanese subsidiaries in China would not bring environmental improvement in the economy as a whole without the diffusion of such investment in other firms in China.