Abstract
Summary Research on Japanese economic activity in Europe concentrates almost exclusively on investment in manufacturing. However, this paper demonstrates that this emphasis both underestimates the longevity of Japanese direct investment in Europe and also grossly underdefines the importance of services. Not only does Japanese direct investment have a much longer history in Europe than is usually recognized but also—and perhaps more significantly—the bulk of that investment is not in manufacturing production per se but in a variety of circulation services. Using establishment‐level data, this paper shows that the spatial manifestation of these circulation services is very different from that of manufacturing production.
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