Aspects of the Japanese Equity Investment in Australia

The purpose of this paper is to establish and correlate the incentives and disincentives that motivated Japanese equity investment to Australia. Japanese investment was primarily to secure procurement of raw materials for the manufacturing industry in Japan. Within this context, the paper explores Kojima's comparative advantage Japanese equity investment theorem. Australian commodity prices and exports to Japan correlated positively with Japanese equity investment, however, the Australian tariff rate and the Australian dollar/yen exchange rate correlated negatively with Japanese equity investment.