This paper examines the competitiveness of Japanese firms in the manufacturing sector since the middle of 1980s when the Japanese
FDI outflow was accelerated. Instead of a standard residency-based balance of trade, we use the idea of ownership-based net
foreign sales introduced by DeAnne Julius (1990, 1991). The calculated results show that the Japanese overseas activities
have made the firms with foreign affiliates abroad become more competitive through selling their products in the local market
of the foreign country. Major exporting sectors such as electric machinery and transport machinery have sustained strong competitiveness.
The competitiveness of Japanese firms is also confirmed by upward tendency of profit rate in foreign affiliates abroad. Using
Dunning terminology the ownership advantages the Japanese firms acquired abroad would mainly come from their inherent management
and production system.
Keywords:Japanese Direct Foreign Investment, International Competitiveness, Intra-firm Trade, Foreign Trade, Foreign Sales, Ownership
Advantages
Forschungsbereich:Industrie-, Innovations- und internationale Ökonomie