Skip to main content

Research Repository

Advanced Search

Do Keiretsu Really Hinder FDI into Japanese Manufacturing?

Kimino, Satomi; Driffield, Nigel; Saal, David


Dr Satomi Kimino
Lecturer in International Business and Programme Director BA International Business

Nigel Driffield

David Saal


This paper examines an issue that has received considerable comment but little analysis. It has often been argued that the presence of the keiretsu in Japan has been instrumental in deterring multinational firms from entering Japan, though evidence for this is patchy. We present some new analysis of this issue, thereby evaluating the effects of keiretsu on inward investment penetration in Japan. In contrast to previous work in this area, our results suggest that there is little relationship between inward FDI and keiretsu networks, once one controls for endogeneity and unobservable heterogeneity. The results illustrate some important interaction effects between keiretsu and other explanatory variables that explain differences in inward investment penetration. © 2012 Copyright International Journal of the Economics of Business.


Kimino, S., Driffield, N., & Saal, D. (2012). Do Keiretsu Really Hinder FDI into Japanese Manufacturing?. International journal of the economics of business, 19(3), 377-395.

Journal Article Type Article
Online Publication Date Oct 24, 2012
Publication Date Nov 1, 2012
Deposit Date Jun 20, 2019
Publicly Available Date
Journal International Journal of the Economics of Business
Print ISSN 1357-1516
Electronic ISSN 1466-1829
Publisher Taylor & Francis (Routledge)
Peer Reviewed Peer Reviewed
Volume 19
Issue 3
Pages 377-395
Keywords Keiretsu; FDI; Market Structure JEL classifications: F23, L60 L41
Public URL
Publisher URL