Abstract
The Japanese economy stands as one of the world's leading advanced capitalist economies, ranking third globally after the United States and the European Union with an annual Gross Domestic Product approaching five trillion dollars. Rapid developments in the global economy, particularly within international finance over the last two decades, have led to a significant surge in the volume and mobility of international capital, establishing it as a primary source of local, regional, and global funding. In this interconnected landscape, it has become nearly impossible for any economy to rely solely on domestic resources for national development; despite the importance of self-sufficiency, international cooperation and financial agreements or blocs are essential to bridge the gap between national resources and potential. Given Japan's substantial weight in this arena, this research analyzes the evolution of international financial flows to and from the Japanese economy over the past twenty years. Utilizing available data and studies, the paper examines Foreign Direct Investment and Foreign Portfolio Investment—the two pillars of global financial resource movement—while considering the profound impact of interest rates on the direction of these capital flows. Structurally, the research is divided into three sections: the first explores the evolution of international financial flows into Japan, the second addresses the development of key monetary and financial indicators within the Japanese economy, and the third focuses on the measurement, estimation, and analysis of their overall impact.
DOI
10.33095/jeas.v15i56.1252
Subject Area
Economics
First Page
89
Last Page
100
Recommended Citation
Ma'la, H. K., & Malallah, A. S. (2009). Measuring the Impact of Interest Rates on the Movement of International Financial Flows (Japan Case Study) for the Period 1985-2005. Journal of Economics and Administrative Sciences, 15(56), 89-100. https://doi.org/10.33095/jeas.v15i56.1252
