Industrial restructuring in ASEAN and the role of Japanese foreign direct investment

Industrial development in ASEAN is closely related to structural changes and industrial adjustments taking place in the industrial countries and the other developing economies in the Asia‐Pacific region. Some activities which have been edged out or phased out in the process of industrial restructuring in Japan and the NICs have migrated to the ASEAN member countries through foreign direct investment channels. Therefore, this paper aims to examine the “flying geese” paradigm and discusses the extent to which this pattern has generated a mutually reinforcing, harmonious process of industrialisation in ASEAN.