“ The Japanese Automotive Global Production Network In Line With Its FDI In The Case of Indonesian Automotive Sector in Southeast Asia Region “ DESSY IRAWATI firstname.lastname@example.org OUTLINE Introduction Aim & Methodology
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“The Japanese Automotive Global Production Network In Line With Its FDI In The Case of Indonesian Automotive Sector in Southeast Asia Region“
This research intend to demonstrate that Japan is not only plugging into the region’s economy energy but also transforming and promoting the host country in technology-based production allianceas opposed to most neoclassical economist view that Japan is really ‘doing nothing extraordinary’ at all in Asia and ASEAN (Aoki 1988, Miyakawa 1991, Mair 1994, Ernst 2000)
1. the movement of Japanese MNEs in the automotive industry into a regional economy increases employment levels in the region (Sugiyama 2000, ADB 2005)
2. The location of Japanese FDI in the automotives, which is spreading across Java region, it has been providing this region with an opportunity for contact and catch-up with new technology and innovation in the automotive and, therefore has enhanced the indigenous growth (Doner 1991, Sugiyama 2000)
3. Japanese automotive affiliates, by using the products of indigenous firms, will enable local firms to expect increased scale of economies and this will bring about a further increase in indigenous invention and innovation (Han 1994, Terry 2002)
4. overseas inward investment tends to have multiplier effects in this region through increased inter-industry linkages. Either through direct investment and attraction of component suppliers from local or through the purchase of labour and intermediate products (Doner 1991, UNCTAD 2007)
Toyota Motor Networks
Source: Toyota Motor Corp. (2000)
Source: Hatch & Yamamura (1991)
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