Abstract
Summary The paper takes issue with some untested but often repeated assertions that Japanese FDI positions in Eastern Europe are weak. Japan's economic relations with Eastern Europe, including FDI, should be understood in the context of Japan's global economic relations. Therefore, it might not be appropriate to approach the question armed with absolute FDI numbers only. So, the author proceeds to empirically test some of these assertions by calculating directional trade ratios and directional FDI ratios! As a result of his approach, he claims that Japan's FDI position in Poland is not significantly weaker compared to its trade position or to other advanced countries' positions. The paper also suggests that, although Japan's FDI in Poland has been undoubtedly stagnant, the larger problem is that the Polish FDI environment is still problematic due mainly to repayment risks and rather low levels of real per capita income.
Published Version
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