Book Description"Banking on Multinationals" addresses two fundamental puzzles in Japanese industrial policy: Why does the Japanese state?better known for its attempts to control markets, protect infant industries, and maximize national exports?administer the world's largest public program to support the expansion of multinational corporations? And why does the Japanese state not fear loss of control over mobile multinational corporations and erosion of the domestic export base through foreign direct investment (FDI)? Solis?s explanation of Japan?s lead in state financing of FDI takes into account both the industrial policy goals behind the extension of FDI and the political uses of subsidized credit to appease economically weakbut politically powerful constituencies. As the first systematic study of Japan?s public FDI loan program, "Banking on Multinationals" reveals a previously unexamined dimension of Japanese government policy and helps explain...

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