An Empiric AnaIysis of the Relationship between Japan's Foreign Direct Investment and Industrial Structure
Since 1990s,Japan's foreign direct investment has appeared a trend of decline in general,but its step of industrial adjustment apparently has lagged behind compared to other major developed countries.This paper applies Granger-causality test and co-integration test to research on the relationship between Japan's foreign direct investment and industrial structure.Empiric results indicate that!the lag of Japan's industrial adjustment is the cause of the decline of its foreign direct investment,and there exist a long and stable relationship between them.In the industrial adjustment,slow development of the third industry has the greatest influence over the decline of Japan's foreign direct investment.