Major Determinants and Potential Impacts of FDI on Japan’s Economic Growth

As in the last years there has been observed a relative growth in the levels of inward FDI inflows in Japan, the aim of the present paper is to analyze the beneficial role of the Japanese inward investment for the country’s sustainable economic development. In our research, we will focus on revealing the main determinants that have contributed towards this increment in inward FDI, pointing out the comparative advantages of Japan over the other developed countries (national investment- friendly policies, political stability, technological infrastructure etc.). Furthermore, the analysis will underline the potential political measures that Japanese government may undertake in order to further increase the FDI inflows in the country, highlighting also the potential risks for the sustainable growth.