Integration and Adjustment of Global Economies
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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. https://doi.org/10.3790/978-3-428-48772-1
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. https://doi.org/10.3790/978-3-428-48772-1
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] https://doi.org/10.3790/978-3-428-48772-1
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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
(1996)
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Abstract
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 |