Japanese industry since the war has been characterized by a very high rate of growth and a severe shortage of equity capital. Given the attractions of this high growth rate coupled with the political and economic stability of the country, it was natural that foreign equity investment would be attracted to Japan. This is particularly true in view of the disturbed conditions existing in other capital-short areas of the world and the recent stagnation in investment demand in the United States, the largest exporter of capital. This mating of supply with demand has not been without its difficulties, however. The very need for capital resulted in measures such as foreign exchange control and outright limitations on foreign investment, all designed to harbor what local capital was available. Furthermore, on the private plane differences in legal systems and concepts posed private law problems not found elsewhere to the same degree. The past two years, however, has seen the solution or amelioration of many of these problems as evidenced by the successful issue in the United States of equity securities by a number of Japanese companies.
John B. Christensen,
Japanese Equity Financing with Special Reference to Issues in the United States,
Wash. L. & Rev.
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