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

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  • 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
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    Cited by:

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    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.

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    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

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