Abstract
The prevailing view about Japanese foreign direct investment (FDI) in the manufacturing sector based on the argument that it has suited to the reallocation of sunset industries in Japan to countries with lower levels of industrial development was adequate for explaining the majority of Japanese investment overseas up to late 70s. Nevertheless，the new situations that faced Japan in the 80s demanded new interpretations for the dynamics of Japanese FDI，specially for the Brazilian case. After evaluating the available theoretical contributions and empirical research for understanding Japanese FDI, an econometric model was developed in order to identify the main determinants of Japanese direct investment in Brasil in the 80s- This model embodies firm level data，as opposed to most empirical work on FDI motives which deals with industry level data.
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