FACTORS OF JAPAN’S INVESTMENT ATTRACTIVENESS: AN EMPIRICAL ANALYSIS OF MACROECONOMIC, INSTITUTIONAL AND REGIONAL DATA
Back to articles of current journal| PDF: |  |
Author(s): | Alimov S. A., Kosarev I. V., |
| Number of journal: | 3(76) | Date: | September 2026 |
| Annotation: | The article examines Japan’s investment attractiveness amid the gap between its stable position in the global economy and domestic constraints on growth. The focus is placed on the insufficiently studied influence of macroeconomic, institutional and regional factors on foreign direct investment inflows. The study is based on annual data from the World Bank, IMF, OECD, Bank of Japan, Statistics Bureau of Japan, and JETRO for 2000-2024, processed using descriptive statistics, comparative analysis, and a time-series regression framework to assess the relationship between FDI inflows and the macroeconomic, institutional, innovation-related, and regional factors of Japan’s investment attractiveness. The article examines the factors determining Japan’s investment attractiveness: foreign direct investment inflows, inflation, unemployment, public debt, foreign trade openness, regulatory quality and the territorial concentration of capital. The main problems are reflected in the limited scale of foreign capital and internal structural barriers. In 2024, the stock of foreign direct investment amounted to only 8.7% of GDP, GDP growth was 0.1%, public debt was about 236.66% of GDP, and the population aged 65 and over reached 36.243 million people, or 29.3% of the total population. Strengthening investment attractiveness is linked to macroeconomic predictability and the reduction of administrative barriers for foreign investors. The results show that Japan’s investment attractiveness is shaped by a combination of macroeconomic stability, regulatory quality, technological capacity, and the regional concentration of business activity, while the findings may be used to assess investment risks, reduce administrative barriers, support R&D, develop human capital, and form industrial clusters outside the largest agglomerations. | ||
| Keywords: | investment attractiveness, Japan, foreign direct investment, macroeconomic factors, institutional environment, regional development, empirical analysis, economic growth, investment risks, regional data, regression model |
||
| For citation: | Kosarev I. V., Alimov S. A. Factors of Japan’s investment attractiveness: an empirical analysis of macroeconomic, institutional and regional data. Biznes. Obrazovanie. Pravo = Business. Education. Law. 2026;3(76):93—99. DOI: 10.25683/ VOLBI.2026.76.1682. |
||