Role of Japanese TNC in Samoa economy: a study of Yazaki (Samoa) Ltd.

Abstract

A transnational corporation (TNC) can make a big economic impact on a small island country. In the literature, there are two positions on economic performance of small island states. On the one hand, there is the pessimistic position that argues that 'smallness' is a disadvantage to small island countries. On the other hand, there is the optimistic position that argues that 'smallness' is an advantage and small island countries can exploit these advantages. Discussions of the role of TNCs in economic development of small island countries were once very fashionable but such debate has somewhat faded away from the literature over the last two decades. This paper will bring back the debate and highlight the economic and employment contribution made in Samoa by Yazaki (Samoa) Ltd. It is a subsidiary of a Japanese TNC Yazaki Corporation (Japan) Ltd. and was established in 1990 when the Yazaki (Australia) Ltd. closed down its assembly plant and relocated to Samoa. The Samoan experience thus provides good lessons to other small island countries pursuing economic growth via TNCs.