The determinants of Japanese foreign direct investment flows to the European community, 1963–1990

In the literature on U.S. foreign direct investment (FDI) into the European Community, a consensus has emerged that U.S. multinational enterprises (MNEs) have been in the vanguard of corporate integration in Europe. This research on Japanese FDI has found evidence that Japanese MNEs have also adopted an integrated strategy in their servicing of the European market, although the UK appears to be the one country that has attracted a disproportionate amount of FDI. Nevertheless, it appears that Japanese firms have, like their U.S. counterparts, been responsive to the development of a pan-European market. Accordingly, it can be concluded that Japanese firms have contributed directly to the economic integration of Europe via their FDI.