| Summary: | 碩士 === 淡江大學 === 亞洲研究所碩士班 === 101 === This paper applies a gravity model to examine the determinant of Japan’s FDI and covers the period from 2000 to 2011. Also, it reviews the relevant literature on the gravity model, then proceeds to use gravity model with the variables of GDP (Gross Domestic Product), per capital income, distance, trade balance, exchange rate, trade openness, and FTA to do research.
The main subject is “Does regional economic integration cause Japan’s FDI?” In conclusion, we found that regional economic integration is positive and statistically significant for Japan’ FDI. Secondly, exchange rate and distance do not seem to matter much for Japan’s FDI. Finally, FDI in manufacturing is vertical type and non-manufacturing sector tends to be a horizontal type.
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