VAR Model Analysis on Japan's OFDI and Industrial Structural Upgrading

Ren Liang
2011 2011 Seventh International Conference on Computational Intelligence and Security  
This paper employs the VAR model to analyze Japan's outward foreign direct investment and its domestic industrial structural upgrading. Vector Error Correction estimates shows that there is a long term relationship between Japan's outward FDI and its industrial structural upgrading, and there is a correction mechanism functioning well in the process. The impulse response analysis results show that the shocks of the Japan's outward FDI will lead to positive effects on the first industry, and
more » ... t industry, and positive effects then negative to the second industry, negative then positive effects to the tertiary industry.
doi:10.1109/cis.2011.355 dblp:conf/cis/Liang11b fatcat:l2axlk53pje5ppemp3kgxrbf4m