Journal of the Indiana Academy of the Social Sciences

Document Type



This paper compares patterns of outward foreign direct investment (OFDI) for Japan and China over similar periods of their integration into the global economy. From a statistical perspective, China’s recent pattern of OFDI flows (2004–2010) differs from Japan’s OFDI flows during a similar period of growth and emergence onto the world scene (1976– 1982). While acknowledging that the world economy is a much different place today than it was in 1982, we nevertheless argue that these differences in OFDI flows constitute an important component in any understanding of the nature of development followed by these two important Asian economies.