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Matsugi, T., Oberhauser, A., Schober, F. (Eds.) (1996). Integration and Adjustment of Global Economies. Direct Investment, Financial Institutions, and International Business Policies. Duncker & Humblot.
Matsugi, Takashi; Oberhauser, Alois and Schober, Franz. Integration and Adjustment of Global Economies: Direct Investment, Financial Institutions, and International Business Policies. Duncker & Humblot, 1996. Book.
Matsugi, T, Oberhauser, A, Schober, F (eds.) (1996): Integration and Adjustment of Global Economies: Direct Investment, Financial Institutions, and International Business Policies, Duncker & Humblot, [online]


Integration and Adjustment of Global Economies

Direct Investment, Financial Institutions, and International Business Policies

Editors: Matsugi, Takashi | Oberhauser, Alois | Schober, Franz

Schriften zu Regional- und Verkehrsproblemen in Industrie- und Entwicklungsländern, Vol. 62


Additional Information

Book Details



This book is concerned with various aspects of global economies. Economists from the Universities of Freiburg i. Br. and Nagoya/Japan had met in a joint seminar to discuss these problems. Their analysis concentrated on current trends in Europe and in Asia with special emphasis on Japan. The first part of the extended and updated seminar contributions stresses the importance of foreign direct investment in the process of globalization. The second part deals with the deficiencies and required adjustments of financial institutions. The last part of the book explores international issues on the level of business policy, including the development of global competition, of environmental policies and of world-wide integration of information and communication technologies. The objective of the joint seminar, as reflected in this book, is the mutual understanding of economic problems that emerge with the interplay of globalization and national interests.

Table of Contents

Section Title Page Action Price
Preface of the Series Editors 7
Table of Contents 9
Part I: Determinants and Trends for Foreign Direct Investment 11
Theodor Dams: Foreign Direct Investment in Developing Countries in a Changing World Economy: Theoretical Foundations and Empirical Results 11
A. Introduction 11
B. Historical Stages of FDI-Considerations and FDI-Orientations 12
C. Volume and Direction of FDI 18
D. Theoretical Approaches for Explaining the Implementation and Direction of FDI 22
E. Some Frames of References for Empirical Research 23
F. Some Concluding Remarks-Challenge for the Development Policy 24
References 24
Takashi Matsugi: Recent Trends in Foreign Direct Investments 27
A. Introduction 27
B. Determinants of Foreign Direct Investments 28
I. The United States 28
II. Japan 28
III. Taiwan 30
C. Concluding Remarks 31
References 32
José Ma. Castro-López: Regional Distribution and Patterns of Japanese Foreign Direct Investment in the European Union and Spain. An Econometric Analysis of the Determinants of Japanese FDI into Spain 33
A. Introduction 33
B. Determinants of Foreign Direct Investment. A Theoretical Background 34
I. The Impact of the Single Market on the Determinants of Foreign Direct Investment 35
C. Japanese Investment in the EU: The Pattern of Foreign Direct Investment in Spain 38
I. Japanese FDI in the European Single Market Perspective 38
II. Japanese Foreign Direct Investment in Spain 39
1. Necessary Considerations 39
2. The Pattern of Japanese Foreign Direct Investment in Spain 42
D. Determinants of Japanese FDI in Spain 47
I. Model Formulation 47
II. Model Specifications 50
1. Economic Strength Behavioral Equation 50
2. Market Openness Behavioral Equation 51
3. Resources Behavioral Equation 52
4. The Comprehensive Equation 53
III. The Estimated Equations 53
1. Economic Strength Behavioral Equation 54
2. Market Openness Behavioral Equation 54
3. Resources Behavioral Equation 54
4. Comprehensive Equation 55
IV. Analysis and Interpretation of the Regression Results 55
1. Economic Strength Behavioral Equation 55
2. Market Openness Behavioral Equation 55
3. Resources Behavioral Equation 56
4. The Comprehensive Equation 56
E. Conclusions and Recommendations 57
Appendix 59
1. Selection ofthe Explanatory Variables 59
2. Problems in the Analysis 60
3. Principal Component Analysis 60
4. Regression Analysis 61
5. Conclusion 63
References 63
Md. Qudrat-e-Khoda: Foreign Direct Investment in Bangladesh: Policies and Problems 65
A. Introduction 65
B. FDI: A Global Perspective 65
C. Theoretical Debates on FDI Issue 66
D. FDI in South Asia: Trends in Inflows 68
E. Need for FDI in Bangladesh 69
F. FDI Policies in Bangladesh: A Brief Review 71
G. Policy After the 1975 Coup d' Etat 72
H. FDI Flows in Bangladesh 74
I. Pattern of FDI Flows: Sector Wise Analysis 74
J. Trends of FDI in Bangladesh 77
K. FDI Distribution by Home Countries 78
L. Features of FDI in Bangladesh 78
M. Foreign Investors' Perspective 79
N. Problems of FDI in Bangladesh 81
O. Concluding Remarks 82
Glossary 83
References 84
Part II: Requirements for Adjustment of Financial Institutions 87
Alois Oberhauser: The Problems of the Debt Criteria in the Treaty of the European Union (Treaty of Maastricht) 87
A. Introduction 87
B. Inadequate fixation of the debt-criteria 89
C. Safeguarding the economie policy by integrating wage policy 92
References 94
Hans-Hermann Francke: The European Currency Area and the European Financial Equalization System 97
A. The Problem 97
B. The Debate Concerning European Currency Integration 98
I. The Pros and Cons of the Arguments 98
II. The Costs and Benefits of Realignments 99
III. The Formation of Efficient Institutions 101
C. The European Currency Union Viewed from the Perspective of the Theory of Optimal Currency Areas 102
I. The Theoretical Foundations of Alternative Criteria of Optimality 102
II. Empirical Aspects 104
D. Prospects and Problems in Designing a European FinanciaI Equalization System 110
I. Fundamental Requirements 110
II. Alternative Designs 112
E. Summary 114
References 115
Jun-ichi Senda: Non-Performing Bank Loans and Banking Policy in Recent Japan 117
A. Introduction 117
B. Recent Bank Mergers in Japan 118
C. Relief Merger without Public Fund Assistance 120
D. Relief Merger with Public Fund Assistance 120
I. Merger of Toho Mutual Bank by Iyo 120
II. Merger of Toyo Shinkin Bank by Sanwa 121
III. Merger of Kamaishi Shinkin Bank by Iwate 121
E. The Cancellation of 'Heisei Bank' 122
F. Necessity of More Diversified Methods of Handling Bad Loans 123
Appendix: A Tentative Cost Comparison of Relief Merger and P&A -In the Case of Tokuyo City Bank- 127
Acknowledgments 128
References 128
Tsuyoshi Kanegae: On the Reform of the Central Banking System in Japan 129
A. Introduction 129
B. The Historical Background of the BOJ 131
I. Foundation of BOJ 131
II. The Characteristics of the BOJ Law Enacted in 1942 132
III. The Similarities to the Deutsche Reichsbank Law 133
1. The Reichsbank Law 133
2. The Main Points of Similarity to the RBL 134
C. The Characteristics of the BOJ System Compared to Those of Other Countries 135
I. The Characteristics of the Corporation and the Types of Contributions of Capital 135
II. The Roles or Functions 135
III. The Decision Making Organ of the Monetary Policy 136
IV. The Appointment of the Directors and the Terms of Service 136
V. The Relationships between the Central Bank and the Government 136
D. The Central Problems of the BOJ System 137
I. The Relationship Between the BOJ and the Government 138
1. Alternative "A" 138
2. Alternative "B" 138
3. Comments 139
II. The Purpose of the BOJ and its Guiding Principle of Operation 139
III. The Capital of the BOJ 140
IV. The Policy Committee of the BOJ 140
E. The Independence of the Central Bank 141
I. The Meaning of Independence of the Central Bank 141
II. The Merits and Shortcomings of the Independence of the Central Bank 142
1. Merits 143
a) Contributions to the Stability of the National Economy 143
b) Increasing Policy Mobility 143
c) Smooth and Fair Distribution of Resources 143
d) Contribution to the Stability of the Payment System 143
e) Contribution to the Moderation of Government Finance 143
2. Shortcomings 144
a) The Possibility of Mismanagement of Economic Policy 144
b) The Vagueness of Policy Responsibility 144
c) Confidence in the Central Bank 144
d) The Self-righteousness of the Central Bank 144
III. The Legal and Customary Relationship between the BOJ and the Government 145
1. The Fundamental Relationship 145
2. The Present Condition of the Policy Committee 145
3. The Appointment of BOJ Personnel and Policy Committee Members 145
IV. Examples of the Government's Concern in the Determination of the BOJ's Monetary Policy 146
1. The Raising of Interest Rates March 1957 147
2. The Lowering of Interest Rates in January of 1961 147
3. The Lowering of Interest Rates in March and April 1963 147
4. The Raising of Interest Rates in March 1964 148
5. The Lowering of Interest Rates in June 1972 148
6. The Raising of lnterest Rates in April 1973 149
7. The Raising of Interest Rates in November 1979 149
8. The Lowering of lnterest Rates in November 1985 149
9. The Raising of Interest Rates: May 1989-August 1990 150
F. Towards a Reform of the BOJ System - a Conclusion 150
I. A Review of the Key Points 150
II. The Necessity of the BOJ System Reform 151
a) Link of the Restructuring of Economic and Financial Systems Built During the War and Post-war Time 151
b) Counterpart to the Change of the International Environment 151
c) Correspondence to the Changes in the Domestic Economic Environment 152
d) Result of Reviews of the Failures in Past Monetary Policy 152
III. Methods to Reform of the BOJ System 152
1. Establishment of the New "Committee on Central Banking System" 153
2. Disclosure of the Information Concerned 153
3. Discussions in the Private Sector or in Academic Circles 153
References 155
Hiroyuki Okuno: The Reform of the Japanese Financial System and Finance for Smalland Medium-Size Enterprises 159
A. Introduction 159
B. The Process of Reforming the Japanese Financial System 161
I. Enlargement of Banks and the Decrease in the Number of Small Banks 161
II. Financial Deregulation and Reform of the Japanese Financial System 163
III. The Collapse of the Post-war Financial System in Japan and an Appraisal of its Achievements 164
C. The Existence of Small- and Medium-Size Banks in a System of Bank Holding Companies 164
I. The Definition of a Holding Company 164
II. The Merits and Demerits of Holding Companies 164
III. The Relations between Bank Holding Companies and Small- and Medium-Size Enterprises 165
D. The Changing Japanese Economy and the Role of Bank Holding Companies 166
I. A Perspective of the Japanese Economy 166
II. Universal Banking versus the Bank Holding Companies System 167
III. Bank Holding Companies and Small- and Medium-Size Enterprises 168
References 171
Part III: International Business Policies 173
Siegfried Hauser: International Competition, Inter-firm-trade and the Money Side of the Economy in Germany, USA and Japan 173
A. Problem 173
B. International Competitiveness 176
C. The Globalization of Corporate Activity 178
I. Dimensions, Reasons and Forms 178
II. Intra-firm Trade 181
D. Possible effects 184
References 186
Wolfgang Scherf: Additional Labour Cost and its Problem in International Competition 189
A. Additional Labour Costs as a Location Factor 189
B. Different Kinds of Additional Labour Costs 192
C. Economic Effects of Additional Labour Costs 195
I. Macroeconomic Shifting Processes 196
II. Further Adjustment Processes 199
D. Possibilities of Restricting Additional Labour Costs 201
References 203
Hans-Josef Brink †: Designing Environmental Protection within Organizations in the Federal Republic of Germany: Concepts and Perspectives 205
A. The Ecological Dimension of Organizational Action 205
B. Organizational Protection of the Environmentas an Object of Organizational Design. Foundation and Concepts 206
C. Organizing Environmental Protection in German Firms 210
D. Perspectives for the further Development of Organizational Environmental Protection and Organizational Importance 211
References 212
Franz Schober: The Strategic Role of Information and Communication Technology for International Business Coordination 213
A. Introduction 213
B. Dimensions of International Business Strategy 213
C. Business Coordination and I+C Technology 215
D. Results of an Empirical Investigation in German Companies 216
I. General Remarks to the Survey 216
II. Integration of I+C Technology and System Development Processes 218
III. Trends for the General Business Strategy 222
IV. Alignment between General and I+C Strategy 224
E. Summary 226
References 227
Contributors 229