[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/102292.html
   My bibliography  Save this paper

Australian Trade and FDI Relations with Japan: Reflecting on the Past Seven Decades

Author

Listed:
  • Bayari, Celal
Abstract
The post-World War II reconstruction of global trade and foreign direct investment (FDI) has been a significant topic of discussion in the analyses of numerous bilateral economic relations, including those that are located in Asia Pacific. Since the reconstruction, Multinational Enterprises (MNEs) have increasingly internalised trade and FDI in markets where they are active. Markets and MNE activities have grown together while governments have become more responsive to this process. This paper discusses the above process along with an analysis of the rise and development of the economic relationship between Australia and Japan from the immediate post-World War II phase through Australia’s neo-liberal trade policy phase. The post-World War II relationship began in the 1950s, and grew during the Cold War years, the end of which has created competitive pressures on the Australian economy. Australia has tried to overcome this by progressively adapting a unilateral neo-liberal trade policy and encouraging its trade and investment partners to do the same, unsuccessfully in most cases where such partners have extensive state subsidy structures in place. The paper discusses the effects of major events such as the Plaza Accord and the end of Japan’s ‘bubble economy’ on the relationship. The discussion extends into the development of new challenges in the 2010s.

Suggested Citation

  • Bayari, Celal, 2012. "Australian Trade and FDI Relations with Japan: Reflecting on the Past Seven Decades," MPRA Paper 102292, University Library of Munich, Germany, revised 19 Aug 2012.
    • Handle: RePEc:pra:mprapa:102292
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/102292/1/MPRA_paper_102292.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kojima, Kiyoshi, 1982. "Macroeconomic versus International Business Approach to Direct Foreign Investment," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 23(1), pages 1-19, June.
    2. H. W. Arndt, 1965. "Australia‐Developed, Developing Of Midway?1," The Economic Record, The Economic Society of Australia, vol. 41(95), pages 318-340, September.
    3. Ikenberry, G. John & Lake, David A. & Mastanduno, Michael, 1988. "Introduction: approaches to explaining American foreign economic policy," International Organization, Cambridge University Press, vol. 42(1), pages 1-14, January.
    4. John Cantwell & John H Dunning & Sarianna M Lundan, 2010. "An evolutionary approach to understanding international business activity: The co-evolution of MNEs and the institutional environment," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(4), pages 567-586, May.
    5. Rajneesh Narula & John Dunning, 2000. "Industrial Development, Globalization and Multinational Enterprises: New Realities for Developing Countries," Oxford Development Studies, Taylor & Francis Journals, vol. 28(2), pages 141-167.
    6. Go Ito, 2010. "Beyond 'Asian Values': Rationales For Australian-Japan Cooperation In Asian Regionalism," Asia Pacific Economic Papers 389, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
    7. Kym Anderson & Peter Lloyd & Donald Maclaren, 2007. "Distortions to Agricultural Incentives in Australia Since World War II," The Economic Record, The Economic Society of Australia, vol. 83(263), pages 461-482, December.
    8. Jun Ikeda, 2007. "How Should One Evaluate Fiscal Conditions - A Study Based on the Comparison between Japan and Australia," Macroeconomics Working Papers 22304, East Asian Bureau of Economic Research.
    9. Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2004. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," Journal of Economic Growth, Springer, vol. 9(2), pages 131-165, June.
    10. Robert E. Goodin & Werner Güth & Duncan Snidal, 2005. "Strategic Aspects of Hegemony," Papers on Strategic Interaction 2005-29, Max Planck Institute of Economics, Strategic Interaction Group.
    11. Katzenstein, Peter Joachim, 1990. "Analyzing change in international politics: The new institutionalism and the interpretative approach," MPIfG Discussion Paper 90/10, Max Planck Institute for the Study of Societies.
    12. Garry Woodard & Moreen Dee & Max Suich, 2007. "Negotiating the Australia–Japan Basic Treaty of Friendship and Cooperation: Reflections and Afterthoughts," Asia Pacific Economic Papers 362, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
    13. Anderson, Kym & Lattimore, Ralph G. & Lloyd, Peter J. & MacLaren, Donald, 2007. "Distortions to Agricultural Incentives in Australia and New Zealand," 2007 Conference (51st), February 13-16, 2007, Queenstown, New Zealand 10407, Australian Agricultural and Resource Economics Society.
    14. Snidal, Duncan, 1985. "The limits of hegemonic stability theory," International Organization, Cambridge University Press, vol. 39(4), pages 579-614, October.
    15. Garry Woodard & Moreen Dee & Max Suich, 2007. "Negotiating the Australia–Japan Basic Treaty of Friendship and Cooperation : Reflections and Afterthoughts," Governance Working Papers 21900, East Asian Bureau of Economic Research.
    16. Mr. Arvind Subramanian & Mr. Francesco Trebbi & Mr. Dani Rodrik, 2002. "Institutions Rule: The Primacy of Institutions over Integration and Geography in Economic Development," IMF Working Papers 2002/189, International Monetary Fund.
    17. Douglas North, 2003. "The Role of Institutions in Economic Development," ECE Discussion Papers Series 2003_2, UNECE.
    18. Philippa Dee, 2005. "The Australia-US Free Trade Agreement: An Assessment," Asia Pacific Economic Papers 345, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
    19. Bayari, Celal, 2008. "Japanese auto manufacturers in the Australian market and the government industry assistance spending," MPRA Paper 101830, University Library of Munich, Germany, revised 04 Apr 2008.
    20. Alan M. Rugman & Alain Verbeke, 2005. "A Perspective on Regional and Global Strategies of Multinational Enterprises," Chapters, in: Analysis of Multinational Strategic Management, chapter 8, pages 104-119, Edward Elgar Publishing.
    21. Bayari, Celal, 2004. "Japanese Business in Australia: A Management Survey of Industry Interaction with Locational Factors," MPRA Paper 103896, University Library of Munich, Germany, revised 19 Jan 2004.
    22. Bayari, Celal, 2012. "The Patterns of Japanese FDI in Australia after the Lehman Shock: Perspectives of the Eclectic Paradigm and Institutional Economics," MPRA Paper 100875, University Library of Munich, Germany, revised 14 Aug 2012.
    23. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
    24. Paul Parker, 1998. "The Multi-Function Polis 1987-97: An International Failure or Innovative Local Project?," Asia Pacific Economic Papers 283, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
    25. McKeown, Timothy J., 1983. "Hegemonic stability theory and 19th century tariff levels in Europe," International Organization, Cambridge University Press, vol. 37(1), pages 73-91, January.
    26. John H Dunning, 1988. "The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(1), pages 1-31, March.
    27. Dunning, John H., 2000. "The eclectic paradigm as an envelope for economic and business theories of MNE activity," International Business Review, Elsevier, vol. 9(2), pages 163-190, April.
    28. Bayari, Celal, 2010. "Japanese Hybrid Factories in Australia: Analysing Labor Relations and Reflecting on the Work of Tetsuo Abo," MPRA Paper 101832, University Library of Munich, Germany, revised 01 Feb 2010.
    29. Jun Ikeda, 2007. "How Should One Evaluate Fiscal Conditions? A Study Based on the Comparison Between Japan and Australia," Asia Pacific Economic Papers 364, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Celal Bayari, 2016. "Economic Geography of the Australian Mining Industry," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 107(5), pages 552-566, December.
    2. Bayari, Celal, 2014. "Labour-centred Politics and Judicial Institutionalisation: The Lineaments of an Early Proto-Regulatory State Model in Australia," MPRA Paper 102293, University Library of Munich, Germany, revised 01 Jun 2014.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bayari, Celal, 2012. "The Patterns of Japanese FDI in Australia after the Lehman Shock: Perspectives of the Eclectic Paradigm and Institutional Economics," MPRA Paper 100875, University Library of Munich, Germany, revised 14 Aug 2012.
    2. Celal Bayari, 2016. "Economic Geography of the Australian Mining Industry," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 107(5), pages 552-566, December.
    3. Bayari, Celal, 2015. "Chinese Economy and Central Asia," MPRA Paper 101012, University Library of Munich, Germany, revised 30 Jun 2015.
    4. McWilliam, Sarah E. & Kim, Jung Kwan & Mudambi, Ram & Nielsen, Bo Bernhard, 2020. "Global value chain governance: Intersections with international business," Journal of World Business, Elsevier, vol. 55(4).
    5. Ilgaz Arikan & Asli M. Arikan & Oded Shenkar, 2022. "Revisiting emerging market multinational enterprise views: The Goldilocks story restated," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(4), pages 781-802, June.
    6. Outreville, J. Francois, 2007. "Foreign affiliates of the world largest financial groups: Locations and governance," Research in International Business and Finance, Elsevier, vol. 21(1), pages 19-31, January.
    7. Iiris Saittakari & Tiina Ritvala & Rebecca Piekkari & Perttu Kähäri & Sami Moisio & Tomas Hanell & Sjoerd Beugelsdijk, 2023. "A review of location, politics, and the multinational corporation: Bringing political geography into international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(6), pages 969-995, August.
    8. Seidler, Valentin, 2011. "Colonial legacy and institutional development: The cases of Botswana and Nigeria," ÖFSE-Forum, Austrian Foundation for Development Research (ÖFSE), volume 52, number 52.
    9. Lederman, Daniel & Saenz, Laura, 2005. "Innovation and development around the world, 1960-2000," Policy Research Working Paper Series 3774, The World Bank.
    10. Fetzer, James J. & Rivera, Sandra A., 2005. "Modeling Modifications in Rules of Origin: A Partial Equilibrium Approach," Conference papers 331372, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    11. Ahmet Faruk AYSAN & Mustapha Kamel NABLI & Marie‐Ange VÉGANZONÈS‐VAROUDAKIS, 2007. "Governance Institutions And Private Investment: An Application To The Middle East And North Africa," The Developing Economies, Institute of Developing Economies, vol. 45(3), pages 339-377, September.
    12. Grimm, Michael & Klasen, Stephan, 2007. "Geography vs. Institutions at the Village Level," Proceedings of the German Development Economics Conference, Göttingen 2007 9, Verein für Socialpolitik, Research Committee Development Economics.
    13. Luc Laeven & Christopher Woodruff, 2007. "The Quality of the Legal System, Firm Ownership, and Firm Size," The Review of Economics and Statistics, MIT Press, vol. 89(4), pages 601-614, November.
    14. Dollar, David & Levin, Victoria, 2006. "The Increasing Selectivity of Foreign Aid, 1984-2003," World Development, Elsevier, vol. 34(12), pages 2034-2046, December.
    15. Kilby, Christopher, 2005. "World Bank lending and regulation," Economic Systems, Elsevier, vol. 29(4), pages 384-407, December.
    16. Dani Rodrik & Arvind Subramanian, 2005. "From "Hindu Growth" to Productivity Surge: The Mystery of the Indian Growth Transition," IMF Staff Papers, Palgrave Macmillan, vol. 52(2), pages 193-228, September.
    17. Anne D. Boschini & Jan Pettersson & Jesper Roine, 2007. "Resource Curse or Not: A Question of Appropriability," Scandinavian Journal of Economics, Wiley Blackwell, vol. 109(3), pages 593-617, September.
    18. Frankel, Jeffrey A. & Vegh, Carlos A. & Vuletin, Guillermo, 2013. "On graduation from fiscal procyclicality," Journal of Development Economics, Elsevier, vol. 100(1), pages 32-47.
    19. Chris Wagner, 2020. "Deducing a state-of-the-art presentation of the Eclectic Paradigm from four decades of development: a systematic literature review," Management Review Quarterly, Springer, vol. 70(1), pages 51-96, February.
    20. Cheryl Xiaoning Long, 2010. "Does the Rights Hypothesis Apply to China?," Journal of Law and Economics, University of Chicago Press, vol. 53(4), pages 629-650.

    More about this item

    Keywords

    Australia; trade; FDI; mining exports; Japan; neo-liberalism; post-war trade system;
    All these keywords.

    JEL classification:

    • B0 - Schools of Economic Thought and Methodology - - General
    • B5 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches
    • F1 - International Economics - - Trade
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • F2 - International Economics - - International Factor Movements and International Business
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • F44 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Business Cycles
    • F6 - International Economics - - Economic Impacts of Globalization
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • L71 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Hydrocarbon Fuels
    • L72 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Other Nonrenewable Resources
    • N1 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations
    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative
    • N15 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Asia including Middle East
    • N17 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Africa; Oceania
    • N5 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries
    • N7 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services
    • N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative
    • N75 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Asia including Middle East
    • N77 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Africa; Oceania
    • P5 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems
    • P51 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems
    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q37 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Issues in International Trade
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:102292. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.