Development Bank of Japan
Research Report
No. 11

Survey on Planned Capital Spending
for Fiscal Years 1999, 2000 and 2001
(Conducted in August 2000)

October 2000

Economic and Industrial Research Department
Development Bank of Japan

Contents

Ⅰ Outline............................................................................................................................ 1
Ⅱ Summary ........................................................................................................................3
1. Overall Condition......................................................................................................................... 3
2. Actual Capital Spending for FY 1999 ....................................................................................... 3
3. Planned Capital Spending for FY 2000..................................................................................... 3
4. Features of Planned Capital Spending for FY 2000................................................................ 4
5. Planned Capital Spending for FY 2001..................................................................................... 5
Ⅲ Survey Results ................................................................................................................7
1. Actual Capital Spending for FY 1999 ....................................................................................... 7
2. Planned Capital Spending for FY 2000..................................................................................... 9
3. Planned Capital Spending for FY 2001...................................................................................15
4. Investment Motives ...................................................................................................................18
5. Trends in Land Investment (Classified According to Principal Business Sector) ............19
6. Capital Spending Abroad (Classified According to Principal Business Sector) ................21
7. Trends in Capital Spending by Foreign-Affiliated Firms (Classified According to
Principal Business Sector) .........................................................................................................21
8. Information Technology Investment(Classified According to Principal Business Sector) .............................................................23

Development Bank of Japan Research Report/ No. 11iI Outline
Objectives
This survey has been conducted biannually (in February and August) since FY 1956 by theDevelopment Bank of Japan to assess major trends in the capital spending of Japanese industry.
The Scope of Capital Spending
In this survey, capital spending refers to domestic investment in the tangible fixed assets of one’s
own corporation; they include buildings, structures and equipment (including ships, aircraft,rolling stock, tools and furnishings), as well as the purchase and development of land (excluding
the purchase of land for subdivision in the real estate industry). Accordingly, intangible fixed
assets are excluded, as are capital spending abroad and investment in subsidiaries/affiliated firms(except that “information technology investment” includes intangible fixed assets, etc. as
indicated later.)Survey Methods
The survey was conducted by means of questionnaire (sent to and completed by individual
firms).
Capital spending has been calculated on a construction basis. In general, it is calculated as thesum total of tangible fixed assets including the construction in progress account (without
subtracting resale value, depreciation and loss).
Target Firms
This survey covers all private firms in Japan’s major industries capitalized at ¥1 billion or more.
However, it excludes agriculture, forestry, finance and insurance, medicine, etc. In addition,
the Teito Rapid Transit Authority has been included in the survey despite the fact that it isclassified as a (non-financial) public corporation under the System of National Accounts (SNA).
Date of Survey
August 10, 2000
Contents of the Survey(i) Actual capital spending in FY 1999 and planned capital spending in FY 2000 and FY 2001, (ii)
Details of individual construction projects in each of the above years, (iii) Anticipated revenue
and expenditure in FY 1999 and FY 2000, (iv) Investment motives in FY 1999 and FY 2000, (v)Trends in land investment in FY 1999, FY 2000 and FY 2001, (vi) Capital spending abroad in FY
1999 and FY 2000, and (vii) Information technology investment in FY1999 and FY2000 (newsurvey item).

Development Bank of Japan Research Report/ No. 11

1Responses
The responses to the survey are shown below. This survey is the largest among similar national
surveys on the trend of capital spending in terms of the number of targeted firms andrespondents.
No. of Firms Targeted

No. of Firms Giving
Valid Responses

Proportion of Valid
Responses

3,495

3,076

88.0%

4,247

3,765

88.7%

Principle BusinessClassification
Investment SpecificClassification

On the Totals
On industrial classification
There are two types of industrial classification: principal business classification and investment
specific classification. The former classifies and totals the companies’ responses based on themain business interest of each company, while the latter classifies and totals the amount ofinvestment for each business department in a company’s response according to industrial sector.
Timing of survey and years covered
The survey is conducted twice a year, in February and in August. Since the survey is conductedfive times concerning the same fiscal year until the planned investments are materialized, theresult reveals business sentiments in minute detail, through the extent to which planned
investments have been modified for example.
Targeted FYTiming of survey
August, 1998
February, 1999
August, 1999

1997
Actual1998

1999

Modified plan

Plan for next FY

Actual expected
ActualInitial plan
Modified plan

Plan for next FY

Actual expected
ActualInitial plan
Modified plan

Plan for next FY

Actual expected

Initial plan

February, 2000
August, 2000
February, 2001

2000

2001

On the number of common firms
The number of common firms for actual capital spending in FY1999 and planned capitalspending in FY2000 refers to the number of respondent firms as regards actual capital spending
in FY1999 and planned capital spending in FY2000 (number of responses based on principal
business classification). Among those firms, the number of common firms for planned capitalspending in FY2000 and planned capital spending in FY2001 refers to the number of respondent
firms as regards planned capital spending in FY2000 and FY2001.

2

Development Bank of Japan Research Report/ No. 11

Positive Growth for the first time in Four Years, Mainly in Manufacturing
Information technology’s ripple effect on investment
II Summary
1. Overall Condition
Overall actual capital spending for all industries in FY 1999 was down 8.4%, the third
consecutive year of decline. (All figures are on a construction basis; the rate of growth or decline
is compared with the previous year.) Looking at planned capital spending for FY 2000,
investment will turn up in both the manufacturing sector (up 15.2%) and the non-manufacturingsector (up 4.4%), meaning the first increase (7.6%) for all industries in four years.
2. Actual Capital Spending for FY 1999
Looking at actual capital spending for FY 1999, there were downward revisions in most industrial
sectors after the last survey (February 2000), with the overall figure down 8.4%, the third
consecutive year of decline.
3. Planned Capital Spending for FY 2000
Planned capital spending for FY 2000 will turn up in both the manufacturing sector and the nonmanufacturing sector. The overall planned increase is 7.6%, the first increase in four years.
In the manufacturing sector (up 15.2%), investment will decline in the food & beverages andiron & steel industries. It will also continue to fall in the petroleum industry under a heavily
restrictive mood. However, capital spending will increase substantially in electrical machinery, led
by capacity investment in electronic parts such as semiconductors and liquid crystals and thus
inducing parallel increases in related industries such as precision machinery (semiconductor
production devices), non-ferrous metals (silicon wafer) and cement, ceramics & glass (glass forliquid crystal display). Investment will also turn up in automobiles and chemicals, recoveringfrom restrictive trends. The result will be the first increase in three years in capital spending for
manufacturing as a whole, with increases expected in most industries. In the non-manufacturingsector (up 4.4%), increases in spending are planned in telecommunications & information
technology thanks to increased demand for cellular phones and adaptation to next-generation
models. Increase is also expected in railways due to progress in the construction of new lines andthe expansion of existing lines in the Tokyo metropolitan area, as well as in wholesale & retailthanks mainly to accelerated establishment of new outlets prompted by the promulgation of theLarge-scale Retail Store Law and to investments in information technology. In addition, the electric
power and leasing industries also envisage increase in investment. Taken as a whole, these factors
will lead to the first overall increase in four years in capital spending in the non-manufacturingsector.
In comparison to the previous survey (February 2000), investment was revised upwards inboth the manufacturing sector (up 9.8%) and the non-manufacturing sector (up 1.1%). Thismeans an overall upward revision of 3.7%. This is the first time in three years that upwardrevision is observed in both the manufacturing sector and the non-manufacturing sector in theAugust survey. The upward revision for manufacturing in particular represents the highest level
since FY 1990 (10.8%).
Development Bank of Japan Research Report/ No. 113A comparison of each half of FY 2000 with the corresponding period in the previous year for
all industries predicts an overall increase of 13.7% in the first half of FY 2000, and a growth of
2.5% in the second half.
Looking at the respective shares of different investment motives for manufacturing, increase
can be observed in “expansion of production capacity,” “product development and upgrading”
and “research and development.” for both the materials industry and the processing & assembly
industry. The share of “expansion of production capacity” rose in many industries including
those envisaging increased investments related to electronic parts, such as electrical machinery,
precision machinery and non-ferrous metals. In particular, the share is the largest in theprocessing & assembly industry since FY1995, the previous recovery phase. “Productdevelopment and upgrading” and “research & development” also increased their shares with
contribution from industries such as electrical machinery and chemicals. Meanwhile, the weightdeclined for “rationalization and labor saving” and “maintenance.”
Land investment shows a big drop of 32.0% from the previous year, with double-figure
reductions planned in both the manufacturing and non-manufacturing sectors. The decline isparticularly steep in manufacturing (down 68.7%). As a result, the share of land investment in
total capital spending will drop from 6.3% to 3.9%.
Turning to capital spending abroad (up 13.3%), there is a rise in the manufacturing sector that
account for the largest share of the investment amounts in the responses to the questionnaire, asa double-digit increase is expected in the processing & assembly industry (up 17.5%) led by active
investments in electrical machinery and transport equipment, and as the materials industry is also
expected to increase capital spending (up 4.1%), led by non-ferrous metals and cement, ceramics& glass. In the manufacturing sector, the ratio of capital spending abroad to domestic capitalspending will fall from 27.2% in FY 1999 to 26.7% in FY 2000, due to substantial increase indomestic capital spending.
The domestic capital spending of foreign-affiliated firms (firms with over one-third foreign
ownership; 153 respondents) shows a substantial increase of 41.3% to ¥816.8 billion thanks todouble-digit increases in all industries except energy. Foreign-affiliated firms now account for
3.1% of total capital spending in Japan.
Looking at information technology investment, double-digit increase is expected in both the
manufacturing sector (up 18.8%) and the non-manufacturing sector (15.4%). Accordingly, thetotal for all industries will rise 16.6%, by far exceeding the growth of total capital spending (4.4%).
As percentage of IT investment, fixed tangible assets and leasing account for the majority (52.2%
in actual figure for 1999), followed by fixed intangible assets (27.8%).
The ratio of capital spending to cash flow (net profit/loss plus depreciation expenses) will fallin both the manufacturing sector and the non-manufacturing sector, because of a larger numberof firms that project improvements in their profit picture.
4. Features of Planned Capital Spending for FY 2000
Prospects of capital investment is getting brighter, albeit with some variance among industries, asboth the manufacturing and non-manufacturing sectors plan to increase investment.
Investment will increase substantially in electrical machinery led by semiconductors and LC(liquid crystal) display. This will be accompanied by parallel increases in related fields. In addition,
cement, ceramics & glass and precision machinery, which already confirmed planned increase incapital spending in the previous survey, are now joined by non-ferrous metals (led by waferrelated investment) and general machinery (led by investment in OA equipment in response todigitalization) in the recovery. The movement indicates a chain reaction of investment related to
information technology. Capital investment in the telecommunications & information technology
4

Development Bank of Japan Research Report/ No. 11

industry will also turn up mainly due to the start of investments in next-generation cellular
phones.
Cautious attitude continues however in some heavy-spending industries. Restrictive moodlingers on in automobiles and chemicals despite planned recovery in capital spending, whileplanned investment may be adjusted downward in electric power. The difference in tendency is all
the more marked because the wholesale & retail industry is affected by the special factor ofaccelerated establishment of outlets before the promulgation of the Large-scale Retail Store Law.
5. Planned Capital Spending for FY 2001
Planned capital spending for FY 2001 shows and overall decline of 8.6%, although many
investment projects still remain uncertain in both the manufacturing (down 3.5%) and nonmanufacturing (down 9.6%) sectors.
Trends in Capital Spending for FY 1999 through FY 2001

Total
(except Electric Power)
Manufacturing
Non-Manufacturing(except Electric Power)(Electric Power)

FY 1999 Survey (Actual)(2,752firms )GrowthFY 1998 FY 1999
rate
(Actual)(Actual)
99/98
258,114 236,433-8.4(216,928) (197,568)(-8.9)
83,47770,498-15.5
174,637 165,936-5.0(133,450) (127,070)(-4.8)(41,187) (38,866)(-5.6)(Units: 100 million yen, %)FY 2000 Survey (Planned)
FY 2001 Survey (Planned)(3,076 firms )(1,579 firms )GrowthGrowthFY 1999 FY 2000
FY 2000 FY 2001
rate
rate
(Actual) (Planned)(Planned) (Planned)
2000/99
2001/2000
242,682
261,227
7.6 105,970
96,887-8.6(203,814) (221,214)(8.5) (74,801)(66,883)(-10.6)
72,582
83,58615.2
17,463
16,844-3.5
170,100
177,641
4.4
88,50780,043-9.6(131,232) (137,628)(4.9) (57,339)(50,039)(-12.7)(38,868)(40,013)(2.9) (31,169)(30,004)(-3.7)

Growth of Capital Spending, FY 1986-FY 2000％
30
All industries
全産業
Manufacturing
製造業
Non-manufacturing
非製造業

20
10
0
▲ 10
▲ 20
▲ 30
86

87

88

89

90

91

92

93

94

95

96

97

98

99 2000 FY(Planned）

Development Bank of Japan Research Report/ No. 115Capital Spending by Industry for Fiscal Years 1999-2001

FY1999FY2000(Actual) (Planned)(3,076 firms)

FY2000FY2001(Planned) (Planned)(1,579 firms)(Units: 100 million yen, %)Component Rate
Growth Rate (%)(%)
FY1999 FY2000
99/98 2000/99 2001/2000 (Actual) (Planned)(3,076 firms)

Total
except Electric Power242,682(203,814)

261,227(221,214)

105,970(74,801)

96,887(66,883)-8.4(-8.9)

7.6
(8.5)

-8.6
(-10.6)100.0(84.0)

100.0(84.7)

Manufacturing
Food & Beverages
TextilesPaper & Pulp
Chemicals
Organic Chemicals
Pharmaceuticals
Petroleum
Cement, Ceramics & Glass
Iron & Steel
Ordinary Steel
Non-Ferrous Metals
General Machinery
Electric Machinery
Electric Devices, etc.
Precision MachineryTransportation
Automobiles
Other Manufacturing

72,582
5,800
831
1,764
9,414
(4,179)(1,972)
1,481
1,769
4,974
(4,211)
1,914
4,557
19,817(12,882)
1,078
13,784(12,957)
5,400

83,586
5,706
761
2,196
10,574(4,349)(2,448)
1,291
2,397
4,222
(3,484)2,747
4,991
26,687(18,885)
1,659
14,761(13,972)
5,596

17,463
1,399
73
577
3,038
(1,377)
(961)
474
641
1,358
(1,064)
1,051
912
4,254
(3,563)343
2,270(2,176)
1,073

16,844
1,368
61
644
2,814
(1,408)
(838)
539
619
992
(688)
1,143
893
4,531
(3,798)279
2,017(1,930)
944

-15.5
-2.7
-12.8
-29.4
-22.4
(-20.8)(-26.8)
-32.3
-20.2
-14.0
(-10.6)
-30.5
-28.3
-0.0
(3.2)
-29.2
-19.2
(-18.6)
-19.2

15.2
-1.6
-8.4
24.5
12.3
(4.1)
(24.2)
-12.8
35.5
-15.1
(-17.3)
43.5
9.5
34.7
(46.6)
54.0
7.1
(7.8)
3.6

-3.5
-2.2
-16.0
11.5
-7.3
(2.3)
(-12.7)
13.7
-3.5
-27.0
(-35.3)
8.8
-2.1
6.5
(6.6)
-18.7
-11.2
(-11.3)
-12.0

29.9
2.4
0.3
0.7
3.9
(1.7)
(0.8)
0.6
0.7
2.0
(1.7)
0.8
1.9
8.2
(5.3)
0.4
5.7
(5.3)
2.2

32.0
2.2
0.3
0.8
4.0
(1.7)
(0.9)
0.5
0.9
1.6
(1.3)
1.1
1.9
10.2
(7.2)
0.6
5.7
(5.3)
2.1

Non-Manufacturing
170,100
except Electric Power(131,232)
Construction
1,957
Wholesale & Retail12,633Retail(9,821)
Real Estate
9,600
Transportation
18,462
Railways(12,526)
Marine Transport(688)
Airlines(2,175)Warehousing, etc.
(1,863)
Electric Power & City Gas
42,073
Electric Power(38,868)
City Gas(3,205)
Telecom.& Information
37,269
Leasing
42,731Services
5,011
Other Non-Manufacturing
364

177,641(137,628)
1,736
13,622(11,204)
8,973
20,753(14,708)(393)(1,261)(2,975)43,764(40,013)(3,751)
38,41545,091
4,941
346

88,507(57,339)515
5,765(4,836)4,492
9,051(5,306)(314)(773)(2,191)
34,875(31,169)(3,707)
13,027
19,960703
118

80,043(50,039)462
3,656(2,970)2,754
5,822(3,175)(112)(524)(1,606)33,097(30,004)(3,093)13,093
20,542538
79-5.0(-4.8)-35.0-8.5(-6.9)
-19.2
-2.7
(0.9)
(-48.7)(13.1)(20.8)-6.3(-5.6)(-14.1)
-12.5
7.6
38.9
-8.0

4.4
(4.9)
-11.3
7.8
(14.1)-6.5
12.4(17.4)(-42.8)(-42.0)(59.7)
4.0(2.9)(17.0)
3.1
5.5
-1.4
-5.2

-9.6
(-12.7)-10.4-36.6(-38.6)-38.7-35.7(-40.2)(-64.5)(-32.2)(-26.7)-5.1(-3.7)(-16.6)
0.5
2.9
-23.4
-33.1

70.1
(54.1)
0.8
5.2
(4.0)
4.0
7.6
(5.2)
(0.3)
(0.9)
(0.8)
17.3
(16.0)
(1.3)
15.4
17.6
2.1
0.2

68.0
(52.7)
0.7
5.2
(4.3)
3.4
7.9
(5.6)
(0.2)
(0.5)
(1.1)
16.8
(15.3)
(1.4)
14.7
17.3
1.9
0.1

Capital Spending (hundred million yen)

Note: Other Manufacturing Industries includes Publishing & Printing, Rubber, Metal Products and Others.
Other Non-Manufacturing Industries includes Fishing, Mining and Others.

6

Development Bank of Japan Research Report/ No. 11

III Survey Results
1. Actual Capital Spending for FY 1999
OutlineOverall actual capital spending for FY 1999 was down 8.4% from the previous year, the third
consecutive year of decline. In the manufacturing sector (down 15.5%), except for the electricmachinery industry, which almost kept previous year’s level (down 0.0%) as investment turned
upward in the second half of the fiscal year, spending fell in almost all industries including
chemicals and automobiles, resulting in a double-digit decline for the second consecutive year. In
the non-manufacturing sector (down 5.0%), spending rose substantially in the service industry,
led by large-scale theme parks. Investment also increased in leasing, backed by the substitution ofplant and equipment investment with leased facilities and the transfer of assets from small-sizedleasing firms. Nevertheless, controls on spending in the nine electric power companies continued.
There were also drops in spending in many other industries including telecommunications &information technology, affected by decrease in the number of fixed phones and reactionary dropin head office-related investments. These factors resulted in an overall reduction in capitalspending in the non-manufacturing sector for the third year running.
Trends by Industrial Sector
The trends in actual capital spending for FY 1999, classified according to industrial sector, are as
follows. Numbers in curly brackets { } show the percentage of total capital spending accounted
for by each sector.

Materials (down 21.5%) {8.5%}
Total capital spending in the materials sector declined for a second consecutive year with someacceleration, as double-digit drop was recorded in all industry including chemicals, which
represents a large portion of materials sector spending.
In the chemical industry, spending controls continued in organic chemicals while plant
construction in pharmaceuticals came to a respite. Capital spending also declined in inorganic andother chemicals. As regards iron & steel, overall tone continued to be that of spending control
despite large-scale renewals of facilities by some major furnace steel makers, resulting in the firstdecline in two years. In non-ferrous metals, the decline accelerated chiefly because of lower
cable-related spending. The paper & pulp industry experienced a second consecutive substantial
drop as investments to expand continuous paper manufacturing machinery for coated paper andnewspaper had been completed by the previous fiscal year. The size of spending cuts in the
cement, ceramics & glass industry increased due to substantial decline in other cement andceramics, despite capacity investments by some manufacturers in glass wiring board for LC
display. Spending controls also continued in textiles.
Processing & Assembly (down 12.2%) {20.7%}
Spending in the processing & assembly sector declined for the second consecutive year withaccelerated drop in automobiles, general machinery and precision machinery although thespending reduction in electric machinery, which represents a large portion of this sector, hasbottomed out and the decline slowed in food & beverages.
In electric machinery, spending cutbacks in electronic and electrical equipment was more thanoffset by rapid recovery in electronic parts, which account for more than half of the investmentin this industry, led by liquid crystals and semiconductors. As a result, the decline in capital
Development Bank of Japan Research Report/ No. 11

7spending in the industry slowed substantially and has almost leveled off. In food & beverages, thedecline also slowed substantially with the construction of new plants and large-scale renewal
investments in other food and beverages.
Spending in automobiles recorded a double-digit drop with the completion of investments tomeet new standards as controls on spending continued. In general machinery, spending wascurtailed substantially, mainly in reaction to the large-scale investments in the previous year. In
precision machinery, overall spending fell by double figures as a result of curbs on investment insemiconductor manufacturing equipment as well as in clocks and other measuring instruments.

Energy (down 7.4%) {18.5%}
The energy sector recorded a decrease in capital spending for the sixth consecutive year.
In the electric power industry, an underlying tone of curbs on investment at Japan’s nineelectric power companies has resulted in downward revisions for the sixth year running. In thegas industry as well, investment in production and distribution facilities was revised downward
and spending decreased for the fourth consecutive year. Large cutbacks in petroleum also
continued due to controls on spending into refining and distribution facilities, despite
investments for environmental conservation measures such as lowering benzene content ingasoline.
Non-Manufacturing, excluding Energy (down 4.5%) {52.3%}
Despite higher capital spending in the leasing and service industries, total spending in nonmanufacturing excluding energy fell for the third year running, reflecting cutbacks in real estate,wholesale & retail, construction and transportation and as investment turned down intelecommunications & information technology.
In leasing, capital spending turned up under an improved climate for financing, backed by thesubstitution of plant and equipment investment with leasing and capital transfers from smallsized leasing firms. Investment in services also increased substantially led by the construction oflarge-scale theme parks in the waterfront area.
Despite substantial investment in cellular phones, capital spending in the telecommunication& information technology industry turned down due to reduced spending on fixed phones andthe Personal Handy-phone Systems (PHS), as well as to reactionary decline in investments in
information services related to systems and head offices. The real estate industry and thewholesale & retail industry both experienced decreases in spending, the former due to thecompletion of local projects and the latter due to spending restriction by supermarkets andconvenience stores’ cautious attitude in establishing new outlets. Spending in construction
declined for the seventh consecutive year as restriction in investment continued. The
transportation industry also curtailed capital spending mainly due to the peaking out ofinvestment in LNG ships in marine transport.

8

Development Bank of Japan Research Report/ No. 11

Trends in Capital Spending by Industry Sector
FY1997Growth Rate (%)
FY1998 FY1999 FY2000

FY2001

FY1997

Share (%)
FY1998 FY1999

Materials
Paper & Pulp
Chemicals
Iron & Steel

3.6
(4.8)
(14.5)(-12.0)-12.8(-33.8)(-10.2)
(0.3)

-21.5
(-29.4)(-22.4)(-14.0)10.8(24.5)(12.3)(-15.1)-6.9(11.5)(-7.3)(-27.0)

10.0
(1.3)
(4.3)
(2.0)

9.7
(1.0)
(4.3)
(2.2)

8.5
(0.7)
(3.9)
(2.0)

8.8
(0.8)
(4.0)
(1.6)

Processing & Assembly
Food & Beverages
Electric Machinery
Automobiles

7.3(31.5)(-1.1)(17.0)-12.1(-12.1)(-21.9)(-4.2)-12.2(-2.7)(-0.0)(-18.6)17.8(-1.6)(34.7)(7.8)-2.1(-2.2)(6.5)(-11.3)

21.7
(2.2)
(8.0)
(5.6)

21.0
(2.2)
(7.2)
(5.9)

20.8
(2.4)
(8.2)
(5.3)

22.7
(2.2)
(10.2)(5.3)

EnergyPetroleum
Electric Power-9.4(-32.2)(-7.9)-9.2(-32.5)(-8.0)-7.4(-32.3)(-5.6)

3.3(-12.8)(2.9)-4.8(13.7)(-3.7)

17.8(1.1)(15.3)

17.6(0.8)(15.4)

18.0(0.6)(16.0)

17.3(0.5)(15.3)

Non-Manufacturing
excluding Energy
Construction
Wholesale & Retail
Real Estate(3.4)
Telecom.& Information
LeasingServices-2.8(-10.5)(-7.0)(2.0)(-10.2)(-6.1)(5.1)(-5.3)-4.8(-16.6)(-1.7)(-19.2)(-8.8)(3.7)(-6.5)(-7.1)-4.5(-35.0)(-8.5)(-19.2)(-2.7)(-12.5)(7.6)(38.9)

4.6(-11.3)(7.8)(-6.5)(12.4)(3.1)(5.5)(-1.4)-12.5(-10.4)(-36.6)(-38.7)(-35.7)(0.5)(2.9)(-23.4)

50.5
(1.3)
(4.4)
(4.6)
(7.2)
(14.5)(17.3)
(1.2)

51.6
(1.2)
(4.8)
(4.3)
(7.0)
(16.4)(16.5)
(1.3)

52.7
(0.8)
(5.2)
(4.0)
(7.6)
(15.4)(17.6)
(2.1)

51.2
(0.7)
(5.2)
(3.4)
(7.9)
(14.7)(17.3)(1.9)

All Industries
excluding Electric Power-1.5(-0.2)-8.0(-8.0)-8.4(-8.9)

7.6
(8.5)

-8.6
(-10.6)100.0(84.7)

100.0(84.6)

100.0(84.0)

100.0(84.7)

Manufacturing
Non-Manufacturing
excluding Electric Power

4.1
-4.0
(-2.8)-13.0-5.6(-4.9)-15.5-5.0(-4.8)

15.2
4.4
(4.9)

-3.5
-9.6
(-12.7)32.8
67.2(51.9)

31.6
68.4(53.0)

29.9
70.1(54.1)

32.0
68.0(52.7)

FY2000Note 1: Materials: textiles; paper & pulp; chemicals; cement, ceramics & glass; iron & steel; non-ferrous metals
Processing & assembly: food & beverages; general machinery; electric machinery; precision machinery; transportation;other manufacturing
Energy: petroleum; electric power; city gas and coal; crude oil & natural gas
Non-manufacturing, excluding energy: Non-manufacturing industries excluding those industries mentioned in ‘energy’
above
Note 2: Share % for FY 1999 and FY 2000 are based upon 3,076 companies that responded to the survey in both years

2. Planned Capital Spending for FY 2000
OutlineTaking a look at planned capital spending for FY 2000, capital spending is expected to turn up in
both the manufacturing and non-manufacturing sectors, meaning the first overall increase (7.6%)
in four years..
In the manufacturing sector (up 15.2%), the food & beverage and iron & steel industries willcurtail spending mainly as a result of the completion of large-scale investment projects in theprevious year. Spending will also continue to decline in petroleum under a strongly restrictive
environment. Meanwhile, capital spending in electrical machinery will increase substantially led bycapacity investments in semiconductors, liquid crystals and other electronic parts, thus inducing
increased spending in related industries including precision machinery, non-ferrous metals andcement, ceramics & glass. Capital spending is expected to turn up in other industries previously
Development Bank of Japan Research Report/ No. 119affected by restrictive environment, including automobiles with investment in new models andchemicals led by pharmaceuticals and other chemicals. As a result of increased spending plannedin many industries, total investment will rise for the first time in three years.
In the non-manufacturing sector (up 4.4%), increases in investment are planned intelecommunications & information technology, led by increased demand for cellular phones andspending in response to next-generation models. Spending will also increase in railways forhealthy progress in the construction of new lines and extensions of existing lines in the Tokyo
metropolitan area, and in wholesale & retail, mainly due to accelerated construction of newoutlets prior to the promulgation of the Large-scale Retail Stores Law as well as to increased
investment in information technology. Increased spending is also planned in electric power andleasing. Thus, overall spending in the non-manufacturing sector is expected to increase for the
first time in four years.
Trends by Industrial Sector
The trends in planned capital spending for FY 2000, classified according to industrial sector, areas follows. Numbers in curly brackets { } show the percentage of total planned capital spending
accounted for by each sector.

Materials (up 10.8%) {8.8%}
The materials sector will record the first increase in three years despite negative growth in iron &steel and textiles, due in part to significant increases in non-ferrous metals and cement, ceramics& glass led by capacity investments related to information technology. Contribution will alsocome from double-digit increase in the heavily-weighted chemical industry, as well as fromsubstantial growth in paper & pulp.
In the iron & steel industry, capital spending will continue to decline as large-scale investment
projects in the previous year has been completed. Spending in textiles will also decline for thethird straight year despite some investments in non-woven fabrics, with the completion of head
office-related investment projects.
Capital spending will turn to substantial increase in non-ferrous metals, led by investments
related to optical cables and semiconductor wafers (including 300mm wafers) as well as incement, ceramics & glass, backed by capacity investments in glass for LC display and ceramic
products. The chemical industry also plans a double-digit increase, mainly for increased capacityin pharmaceuticals and other chemicals. In addition, capital spending will turn to a substantial
increase in paper & pulp, mainly due to the introduction of new machines accompanying thereconstruction of production systems for corrugating medium and whiteboard.
Processing & Assembly (up1 7.8%) {22.7%}
Capital spending in the processing & assembly sector is expected to rise substantially for the firsttime in three years despite a slight decline in food & beverages, due to huge increases in electricalmachinery and precision machinery and upturns in automobiles and general machinery.
In the electrical machinery industry, spending will increase rapidly in electronic parts, which
account for more than half of spending in the industry, backed by capacity investments insemiconductors and liquid crystals. This, along with increased spending on electronic equipment
including computers and communication equipment, will result in a substantial growth ofinvestment in the industry as a whole.
In the precision machinery industry as well, spending will rise substantially for the first time inthree years, as a significant growth is envisaged in the heavily-weighted semiconductor
manufacturing devices and clocks & other measuring instruments, mainly related to
10 Development Bank of Japan Research Report/ No. 11

semiconductors and liquid crystals.
In the automobile industry, investment will increase for the first time in three years despite thecontinuation of restrictive tone overall, thanks to investment into new models and forrationalization. In the general machinery industry, overall spending will also rise for the first timein three years despite spending controls on boilers and motors, as investment in machinery for
office & household use will increase by double figures mainly for new products and spending on
general machinery parts is expected to continue its growth mainly for capacity building against
the backdrop of perceived tightness in supply and demand.

Energy (up 3.3%) {17.3%}
The energy sector is expected to show growth for the first time in seven years.
In the electric power industry, despite the continuing underlying tone of squeezes oninvestment, an overall increase in capital spending is planned due to the good progress being
made by the nine major electric power companies in construction related to the development of
power sources such as atomic power stations, and as other power suppliers will also increase
investment related to atomic fuels and in wholesale power supply activities. In the gas industry,
capital spending is expected to rise for the first time five in years thanks to expected increase ininvestment in city gas as the construction of LNG bases will progress in full swing. The
petroleum industry plans overall cuts for the eighth consecutive year despite investments related
to the consolidation of distribution facilities, as restraints on spending at refineries are continued.
Non-Manufacturing, excluding Energy (up 4.6%) {51.2%}
Looking at the non-manufacturing sector excluding energy, cuts in spending are planned in thereal estate and construction industries while investment in services will turn down. But total
spending in this sector will rise for the first time in four years because spending will continue togrow in leasing and will turn up in the transportation, telecommunication & information
technology and wholesale & retail industries.
In real estate, capital spending will decline for the third straight year despite building
redevelopment in the metropolitan areas, because of continued checks on investment. Spending
will also decline in the construction industry for the eighth consecutive year, as cutbacks ininvestment continues. Service investment will experience a slight setback largely due to thecompletion of hotel construction although the construction of large theme spark will reach the
pinnacle.
Capital spending in leasing will continue to increase as a result of recovery in overall
investment and increased demand for leasing in asset replacement. In transportation, capitalspending will rise by double figures thanks to the construction of new lines and extension ofexisting lines in the Tokyo metropolitan area and the full progress of new airport construction.
As regards the telecommunications & information technology industry, spending will turn up
thanks to increase in demand for cellular telephones and investment in next-generation products.
In the wholesale & retail industry, capital spending will increase for the first time in four years,
backed by accelerated investment in new outlets prior to the promulgation of the Large-scale
Retail Store Law and IT investment by convenience stores.

Development Bank of Japan Research Report/ No. 1111Trends and Features of Capital Spending by Industry
Trends and features of capital spending for main industries are shown below. The figures inparentheses ( ) indicate the rate of growth in capital spending for the industry in question (FY
1999→ FY 2000). The figures in curly brackets { } show each industry’s share of planned
spending for FY 2000 as a percentage of the total value for all industries.

Materials
Chemicals: (-22.4% → 12.3%) {4.0%}
For organic chemicals, which accounts for the majority of the chemical industry, as well as forinorganic chemicals, spending will increase largely due to investment for rationalization. For
pharmaceuticals, spending will increase substantially mainly on capacity buildup including plant
construction. Spending for other chemicals will also record a double-digit growth. Combining allof these factors, capital spending in the chemical industry as a whole is expected to rise for the
first time in three years.
Iron & Steel: (-14.0% → -15.1%) {1.6%}
Despite continued investment to update facilities by some blast furnace producers, the industry
will once again see an overall decline in total spending due to the completion of large-scale
investment projects in the previous year..
Non-Ferrous Metals: (-30.5% → 43.5%) {1.1%}
Thanks to increased investment related to optical cables and semiconductor wafers including
300mm wafers, the industry will record a substantial increase in capital spending for the first timein three years.
Paper & Pulp: (-29.4% → 24.5%) {0.8%}
Despite continued checks on spending, investment in the industry will rise for the first time inthree years mainly due to the introduction of new machines accompanying the reconstruction of
production systems for corrugating medium and whiteboard.
Cement, Ceramics & Glass: (-20.2% → 35.5%) {0.9%}
Although spending restriction will continue in cement, capacity investment is expected in glass,particularly in glass for LC display. Capacity investment in other cement, ceramics and glass isalso expected, especially for ceramic products thanks to buoyant semiconductor production. For
the industry as a whole, spending will increase for the first time in five years.
Textiles: (-12.8% → -8.4%){ 0.3%}
Despite some capacity investment in non-woven fabrics, there will be a decrease in capitalspending for the third straight year due to the completion of head office-related investment
projects.

Processing & AssemblyElectric Machinery: (-0.0% → 34.7%){10.2%}
For electronic parts, which account for the majority of the electric machinery industry, spending
will increase substantially due to capacity investment mainly in semiconductors and liquid crystals.
Spending on electronic devices will increase largely related to computers and communicationequipment. In electric devices, investment will turn up after four consecutive years of decline.
12 Development Bank of Japan Research Report/ No. 11

Thus, overall spending will record a significant growth.
Automobiles: (-18.6% → 7.8%) {5.3%}
For four-wheel vehicles, capital spending will increase despite continued restriction, as somemanufacturers plan to increase investment for new types of vehicles as part of their businessrestructuring programs. For parts/bodies, spending will also increase despite a restrictive tone,
with investment for new models and rationalization. As a result, overall capital spending will risefor the first time in three years in this industry.
Food & Beverages: (-2.7% → -1.6%) {2.2%}
Although spending will increase in processed meat & dairy products, flour milling, sugar
manufacture, edible oils and beer & other alcoholic beverages, a reactionary drop to previous
year’s new plant construction is expected in other foodstuffs. As a whole, investment willcontinue to decline in the industry.
General Machinery: (-28.3% → 9.5%) {1.9%}
Although restriction will continue for boilers and motors, a double-digit growth is expected for
office & household machinery mainly due to response to new products. Continued increase isalso expected for general machinery parts, led by capacity investment against the backdrop ofperceived tightness in supply and demand. Moreover, investment will turn up in metal processing
machinery and industrial machinery. Thus, capital spending for the general machinery industry as
a whole will increase for the first time in three years.
Precision Machinery: (-29.2% → 54.0%) {0.6%}
Decline in spending will continue for medical instruments. For the heavily-weighted
semiconductor manufacturing equipment and clocks & other measuring instruments, however,
spending will increase substantially thanks to the buoyant production of semiconductors andliquid crystals. On balance, spending for the precision machinery industry as a whole will turn toa substantial increase after three consecutive years of decline.

EnergyElectric Power: (-5.6% → 2.9%) {15.3%}
Despite continued restrictive tone, spending will increase for the nine electric power companies,
thanks to good headway being made in construction projects related to the development of
power sources such as nuclear power stations. There will also be a growth in the rest of electric
power industry, due in part to healthy progress in investment related to nuclear fuel andwholesale power supply activities.
Gas: (-14.1% → 17.0%) {1.4%}
For city gas, increased spending is planned thanks to the full-scale commencement of large-scaleconstruction of LNG bases in some regions. Spending will also turn up at LNG suppliers thanks
to large-scale investment projects. Added to planned increase in spending for heat supplies,
capital spending in the gas industry as a whole will rise for the first time in five years.
Petroleum: (-32.3% → -12.8%) {0.5%}
Although there will be some increases in investment in distribution facilities related toconsolidation, restraints on investment into refineries will continue. Overall, capital spending in
Development Bank of Japan Research Report/ No. 11

13the petroleum industry will decline for the eighth consecutive year.

Non-Manufacturing Industries, excluding Energy
Leasing: ( 7.6% → 5.5%) {17.3%}
Amid improvement in the overall picture of capital spending, spending in leasing will continue toincrease as a result of increased demand for leasing in asset replacement as well as the leasing of
information equipment.
Telecommunications & Information Technology: (-12.5% → 3.1%) {14.7%}
For telecommunications, which is the mainstay of this industry, spending will turn up thanks to
new investments in next-generation models as well as to continued increase in demand forcellular telephones. Although companies will be reducing capital spending for information
services after large increases in spending related to system construction, investment will increasein broadcasting, mainly for cable TV. Thus, capital spending will regain positive growth for thewhole industry.
Railways: (0.9% → 17.4%) {5.6%}
Continued increase in capital spending is planned thanks to progress in the construction of newlines and line extensions in the Tokyo metropolitan area.
Wholesale & Retail: (-8.5% → 7.8%) {5.2%}
In wholesale, spending will be cut for the second straight year despite investments related to head
offices and redevelopment. In retail, the prospect of investment by some supermarkets,cooperatives and specialized stores in new outlet development ahead of the enforcement of theLarge-scale Retail Store Law (June 2000) and IT investments by convenience stores inintroducing services for the EC will result in the first spending increase for the industry as awhole in four years.
Real estate: (-19.2% → -6.5%) {3.4%}
Although construction of large office buildings is healthily progressing in the Tokyo metropolitanarea, in general there is a continued pause in investment, meaning an overall drop in capitalspending for the third year in a row.
Services: (38.9% → -1.4%) {1.9%}
Although investment in the construction of large-scale theme parks is expected to reach its peak,
investment in hotels and inns will turn down with the completion of large-scale construction
projects, leading to an overall decline in capital spending..
Warehousing & Transportation: (20.8% → 59.7%) {1.1%}
Despite expected respite in investment in warehousing, spending will increase substantially,
benefiting from investments in new airport construction, which will progress in full swing.
Construction: (-35.0% → -11.3%) {0.7%}
In construction there, will be reduced investment for the eighth straight year, with thecontinuation of overall restraints on investment as future business conditions remain uncertain.

14 Development Bank of Japan Research Report/ No. 11

Airlines: (13.1% → -42.0%) {0.5%}
Despite increase in spending for ground facilities and spare parts, industry spending overall willshow a substantial decline due to reduced introduction of new aircraft as each major company
carries out plans to improve management efficiency.
Marine Transport: (-48.7% → -42.8%) {0.2%}
With reduction in spending on the construction of LNG transport ships, investment willcontinue to decline sharply.
3. Planned Capital Spending for FY 2001
Planned capital spending for FY 2001 for all industries shows an overall decrease of 8.6%. In
both the manufacturing sector (down 3.5%) and the non-manufacturing sector (down 9.6%),
however, there are a large number of capital spending decisions that still have not been made.

Development Bank of Japan Research Report/ No. 11

15Characteristics of Capital Spending by Industry
Figures indicate[FY 1999]

Decrease
‑30

‑20

‑10

0

Food & beverages

Share (%)

Manufacturing

▲

▲

30

40

12.8
0.4

‑40

‑30

22.4
4.5

20.2
0.8

▲

Iron & steel
▲14.0
2.2

28.3
2.4

▲

Electrical machinery

15.2
29.9

0.0
7.4

▲

10

Construction

35.0
1.1

30

Railways
0.9
4.8 Airlines
13.1
0.7 Warehousing &

37.8
0.7

54.0
0.4

Other
manufacturing

Railways
17.4
5.2

Airlines
▲42.0
0.9
50

Gas
14.1
1.4

▲

4.4
70.1

Telecommunications& information
technology

Warehousing &transportation

59.7
0.8

Other transportation

16.9
0.5

Electric
power

Non-manufacturingNon-manufacturing

6.5
4.0

Marinetransport

42.8
0.3

Electric
power
▲5.6
16.0

▲

Precisionmachinery

7.8
5.2

▲

20.8
0.6

Other transportation
▲

67.7

9.5
1.9

Wholesale & 2.2
retail11.3
0.8transportation

70

43.5
0.8

▲

48.7
0.4

▲5.0

Non-ferrous
metals3.6

Construction
▲

40

19.2
4.3

60

7.8
5.3

Real estate

▲

50

35.5
0.7

Automobiles▲▲

Marinetransport

Cement, ceramics & glass

34.7
8.2

▲8.5
4.9
Real estate

40

24.5
0.7

50 Change on
previous year(%)

Generalmachinery

Other transport
equipment

Other manufacturing
▲19.2
2.5

40

12.3
3.9

20

Wholesale &retail▲Chemicals

8.4
0.3

▲

4.7
0.3

18.6
6.1

30

Electricalmachinery

▲

26.9
0.4

20

15.1
2.0

Automobiles

▲

30

10

▲

▲

Other transport
equipment0Paper & pulp

Petroleum▲12.8&
0.6 Iron
steel

Precision machinery

29.2
0.5

‑10

Food & beverages

2.4

General machinery

30.5
1.0

‑20

Increase

Textiles▲1.6

Cement, ceramics& glass

▲

20

‑50
0

▲

Chemicals

Non-ferrous metals

▲15.5

32.3

20

Textiles

2.7 Paper & pulp
2.2 ▲29.4

1.0
Petroleum
▲32.3
0.8

10

10

Decrease
50 Change on
previous year(%)

Share (%)

‑40

Increasechange on previous year in FY 2000
share in FY 1999 spending

Figures indicate[FY 2000]

Manufacturing‑50
0change on previous year in FY 1999
share in FY 1998 spending

2.9
16.0
60
Gas
17.0
1.3
Telecommunications& information
technology

70

3.1
15.4

12.5
16.5

80

80

Leasing
Leasing

90

90

7.6
14.8

Other nonmanufacturing

38.9
1.3

8.0
0.1

‑40

‑30

‑20

Other nonmanufacturing

Services

▲

100
‑50

‑10

0

10

20

30

40

50

All industries average▲8.4 %

16 Development Bank of Japan Research Report/ No. 11

5.5
17.6

5.2
0.2

▲

100
‑50

‑40

‑30

Services
▲1.4
2.1
‑20

‑10

0

10

20

All industries average
7.6 %

30

40

50

[FY 2001]

Figures indicate

change on previous year in FY 2001
share in FY 2000 spending

Decrease
‑50
0

‑40

‑30

‑20

Increase
‑10

0

10

20

▲3.5

▲2.2
1.3

10

Precision machinery

50 Change on
previous year (%)
PetroleumNon-ferrous metals
Electricalmachinery

▲2.1
0.9

▲18.7
0.3

16.5

40

11.5
0.5

Generalmachinery

▲27.0
1.3

30
Paper & pulp

Chemicals
▲7.3
2.9

▲16.0
0.1

Iron & steel

Share (%)

Manufacturing

Food & beverages Textiles

▲3.5
0.6

8.8
1.0

Automobiles

6.5
4.0

Other manufacturing
▲12.0
1.0
Wholesale &retail
▲36.6
20
5.4

Other transport
equipment
Construction

13.7
0.4
Cement, ceramics & glass

▲11.3
2.1

▲7.2
0.1

▲10.4
0.5

Real estate
▲38.7
4.2

RailwaysMarinetransport

▲40.2
5.0

30

Airlines
32.2
0.7

Wholesale &retail▲26.7 Other transportation
2.1
▲13.3
0.4

▲

64.5
0.3

▲

40

Non-manufacturing

Electric
power
3.7
29.4

▲

50

60

▲9.6

83.5

Gas
16.6
3.5

▲

Telecommunications & information
technology

70

0.5
12.3

80

Leasing
90

2.9
18.8

Services
Other
▲23.4
nonmanufacturing 0.7
▲33.1
0.1

100
‑50

‑40

‑30

‑20

‑10

0

10

20

30

40

50

All industries average▲8.6 %Development Bank of Japan Research Report/ No. 11

17

4.

Investment Motives

Investment Motives in the Manufacturing and Non-Manufacturing Sectors in FY 2000
Looking at the respective shares of each category of investment motive for the manufacturingsector in FY 2000, one finds increases in “expansion of production capacity,” “productdevelopment and upgrading” and “research and development” for both the materials andprocessing & assembly sub-sectors.
Above all, “expansion of production capacity” will increase substantially in terms of bothshare and absolute investment amount. Contribution from electrical machinery will be
particularly significant, thus implying the expansion of IT-related investment to other industries.
A similar development can be observed in “product development and upgrading.” Increase in“research and development” will be led by electrical machinery and chemicals, albeit with somevariance among industries.
Share will decline for “rationalization and labor saving” due to reduced investment in somematerials industries, as well as for “maintenance” due to decline in the majority of the industries.
The share of “expansion of production capacity” will also rise in the non-manufacturingsector, with contribution coming from industries such as transportation and wholesale & retail.
Investment Motives in the Manufacturing Sector for the “Materials” and “Processing &Assembly” Industries
We now look at the respective shares of each category of investment motive within the
manufacturing sector, comparing the materials industry with the processing & assembly industry.
For the materials industry, the motives “rationalization and labor saving”, and “maintenance” aretraditionally at high levels, whereas for the processing & assembly industry, the incentives“product development and upgrading” and “research & development” are most important.
The characteristics of investment motives for the materials industry in FY 2000 are:i) Increased shares of “expansion of production capacity” (20.3% → 24.2%) and “productdevelopment and upgrading” (7.1% → 8.5%) as the amount of investment is slated to record adouble-digit increase.
ii) A substantial decline in “rationalization and labor saving” (23.5% → 19.8%) due to thetermination of large-scale investment projects.
iii) A rise in the importance of “research and development” in the heavily-weighted chemicalindustry (11.3% → 11.5%), also contributing to increase in the absolute amount of investment.
iv) An continuing shift from “expansion of production capacity” to “maintenance” in chemicals,
thus increasing the overall share of the latter for the second straight year.
In the processing & assembly sub-sector, a double digit increase in capital spending is also
expected, pointing to the expansion of IT-related investment in various industries. The
significant trends for the sub-sector are:i) An increase in the importance of “expansion of production capacity” to exceed 30% for the
first time since FY 1995 (28.4% → 30.7%) with contribution from electrical machinery andprecision machinery.
ii) An increase in “product development and upgrading” (20.5% → 21.3%) led by electricalmachinery and general machinery to reach the second highest level ever, only next to FY1997
and comparable to FY 1996.
iii) An overall increase in “research & development” (10.3% → 10.7%), led solely by a sizable
increase in its weight in electrical machinery (13.1% → 13.6%) with a substantial increase in the

18 Development Bank of Japan Research Report/ No. 11amount of spending overall, whereas its share will decline in most of the industries.
Shift in Investment Motives within the Manufacturing Sector
We now look at the change in the percentage share of each category of investment motive for the
manufacturing sector. For “expansion of production capacity”, there are increases in manyindustries including electrical machinery, precision machinery and non-ferrous metals. Overall
there is a large increase from 26.0% to 28.5%.
For “product development and upgrading”, there are increases for electrical machinery,general machinery, transport equipment, chemicals and other industries, resulting in the largest
share since FY 1986 with an overall rise from 15.9% to 17.0%.
Despite increased shares in most industries, “rationalization and labor saving” is down from
16.0% to 15.4% overall, due to the termination of large-scale investment projects in somematerials industries.
For “research & development” there are rises for most industries, including the highly
influential electrical machinery and chemical industries, resulting in an overall increase from 9.1%
to 9.6%.
Despite an increase in the heavily-weighted chemical industry, “maintenance” as a spending
incentive shows a decline from 16.8% to 16.3%, as most investment projects will be concentrated
on “expansion of production capacity” and “product development and upgrading.
Investment Motives(Unit: %)Total

Manufacturing

Non-Manufacturing(2,237 firms)

Materials

Processing & Assembly

FY99

FY2000

FY99

FY2000

FY99

FY2000

FY99

FY2000

FY99

FY2000

ActualPlannedActualPlannedActualPlannedActualPlannedActualPlanned

Expansion of Production
Capacity

51.3

52.3

26.0

28.5

20.3

24.2

28.4

30.7

62.3

63.2

Product Development
and product upgrading

7.4

8.1

15.9

17.0

7.1

8.5

20.5

21.3

3.7

4.1

Rationalization andLabor Saving

6.9

6.8

16.0

15.4

23.5

19.8

12.7

13.5

3.0

2.9

Research & Development

3.3

3.6

9.1

9.6

7.2

7.7

10.3

10.7

0.8

0.9

Maintenance

15.4

15.0

16.8

16.3

26.9

26.7

11.7

11.1

14.8

14.4

Others

15.7

14.1

16.2

13.2

15.0

13.2

16.3

12.7

15.4

14.5

Total

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

5. Trends in Land Investment (Classified According to Principal Business Sector)
Actual Land Investment for FY 1999
Actual land investment for FY 1999 (based on figures for the 1,782 firms that gave responses
regarding both FY 1998 and FY 1999) was down 34.3% compared with the previous year, thethird consecutive annual decline. Despite land purchases related to the development of former
railway sites and business restructuring in paper & pulp, petroleum, iron & steel and electricalmachinery for manufacturing as well as in services for non-manufacturing, overall land
investment recorded sharper drops in both sectors (down 21.1% and 38.2% respectively),reflecting reductions in other industries..

Development Bank of Japan Research Report/ No. 11

19Planned Land Investment for FY 2000
Planned land investment for FY 2000 (based on figures for the 2,271 firms that gave responses
regarding both FY 1999 and FY 2000) is down 32.0%, a large decline from the prior fiscal year,
as no significant developments can be observed save for investment in new airport construction
sites in transportation. (Land investment accounts for 3.9% of all investment planned for FY
2000.)It should be noted that there is a tendency for large upward revisions in land investment
between the planning stage and actual implementation.
Planned Land Investment for FY 2001
Planned land investment for FY 2001 (based on figures for the 1,327 firms that gave responses
regarding both FY 2000 and FY 2001) is down 55.8% on the previous year. (Land investment
accounts for 2.6% of all investment planned for FY 2000.) Planned land investment for FY 2001
is even more uncertain than for FY 2000, however.
Trends in Land Investment (Classified According to Principal Business Sector)
FY1998FY1999(Actual) (Planned)(1,782 firms)

GrowthRate (%)
99/98

FY1999FY2000(Actual) (Planned)(2,271 firms)

GrowthRate (%)
2000/99

FY2000FY2001
Growth(Actual)(Planned) Rate (%)(1,327 firms)
2001/2000

Total Investment

159,057

144,950-8.9

170,498

182,462

7.0

87,26978,684-9.8

Investment except Land145,135

135,808-6.4

160,068

175,373

9.6

82,57376,609-7.2

Investment in Land13,922

9,142

-34.3

10,430

7,089

-32.0

-55.8

(8.8)

(6.3)

(6.1)

(3.9)

Total Investment

51,062

41,437-18.8

50,49457,088Investment except Land47,94038,973-18.7

47,463

Investment in Land

3,121

2,464

-21.1

3,031

(6.1)

(5.9)

(6.0)

(1.7)

Total Investment

107,996

103,513-4.2

120,004

125,374

Investment except Land97,19596,836-0.4

112,606

119,233

Investment in Land10,801

6,678

-38.2

7,399

6,141

(Share of Land %)(10.0)

(6.5)

(6.2)

(4.9)

(Share of Land %)(Share of Land %)

4,696

2,075

(5.4)

(2.6)

13.1

14,401

13,62856,14018.3

14,156

13,521

-4.5

948

-68.7

246

106

-56.7

(1.7)

(0.8)

4.5

72,86865,057

5.9

68,41863,088

-7.8

-17.0

4,450

1,968

-55.8

(6.1)

(3.0)

-5.4

Non-Manufacturing

Growth Rate of Investment in Land
Total of All Industries
93

94

95

96

97

98

99

2000

(FY)
2001

30
20

18.1

10
0

-4.3

-10
-20
(％)
-30
-40
-50

-11.1
-16.5

-14.8
-21.3

-24.5

-34.3

-30.5
-40.0
-43.4

-39.9
-42.5

-38.2

-36.8

-40.7

-41.0

-47.5

-47.9

-32.0
-33.9

-54.6

-60
-70

-55.8
-66.6

-80

Actualin August of the Following Year)
実績 (Survey（翌年８月調査）
Planned(Survey in August of the Same Year)
計画 （当年８月調査）
Planned(Survey in August of the Previous Year)
計画 （前年８月調査）

20 Development Bank of Japan Research Report/ No. 11-10.7

6. Capital Spending Abroad (Classified According to Principal Business Sector)
Capital spending abroad
Capital spending abroad in all industries will rise 13.3% from ¥977.4 billion in FY 1999 to¥1,107.5 billion in FY 2000 (based on figures for the 1,268 firms that gave responses regarding
both FY 1999 and FY 2000). (The manufacturing sector increases by 13.3%, while the nonmanufacturing sector rises by 13.4%.) In the manufacturing sector, which accounts for the
majority of capital spending abroad in the survey responses, there is an increase in spending of
4.1% for materials industry, whereas in the processing & assembly industry, investment willrecord a double-digit growth of 17.5% mainly due to active spending in electrical machinery andtransport equipment. In the non-manufacturing sector, a broad increase in the transportationindustry will contribute to a 13.4% increase overall, despite declines in construction andwholesale & retail.
The ratio of capital spending abroad to domestic capital spending within the
manufacturing sector
The ratio of capital spending abroad to domestic capital spending for the manufacturingsector (based on figures for the 566 firms that gave responses regarding both FY 1999 and FY2000) stands at 27.2% for FY 1999 and 26.7% for FY2000. For the processing & assembly subsector there is a decline from 28.3% to 27.9%, due mainly to a decline in the electric machineryindustry, which is oriented toward domestic investment. For the materials sub-sector, the ratio
also falls from 26.9% to 24.9%, due in part to declines in chemicals and non-ferrous metals.
Note: ‘Capital spending abroad’ by a company refers to capital spending conducted overseas
by either the company itself or one of its overseas subsidiaries. (Here, an ‘overseas
subsidiary’ of a company is an overseas firm for which the company holds at least 10%of the shares.)
Capital Spending Overseas by Region(Units: 100 million yen, %)RegionCapitalspending
overseas(1,268 firms)

U.S., EUFY 1999
5,334

Amount (¥100 million)
Share
FY 2000
54.6%
5,431

Share
49.0%

Change2000/1999
1.8%

Asia
Others

3,328
1,112

34.0%
11.4%

4,075
1,569

36.8%
14.2%

22.4%
41.1%

Total

9,774

100.0%

11,075100.0%

13.3%

7. Trends in Capital Spending by Foreign-Affiliated Firms (Classified According to
Principal Business Sector)
153 firms out of 3,076 that responded to both FY 1999 and 2000 surveys are classified as
foreign-affiliated firms (firms with over one third foreign ownership). Their capital spending
accounts for 3.1% of the total (FY 2000).
Planned capital spending by foreign-affiliated firms in FY 2000 is 41.3% higher than in theprevious fiscal year. By sub-sector, capital spending will drop in energy (down 17.7%) but
increase in chemicals and other materials industries (up 41.4%). Also, there is a substantial
increase in processing & assembly (up 54.1%) as a result of increases for electric machinery andtransport equipment. Spending will continue to increase sharply in non-manufacturing excluding
Development Bank of Japan Research Report/ No. 1121energy (up 34.6%), led mainly by services.
Planned capital spending by foreign-affiliated firms continues to rise for FY 2001, up 10.1%
from the previous year.
Capital Spending by Foreign Affiliated Firms (Classified According to Principal Business
Sector)(Units: 100 million yen, %)Capital Spending (hundred million Yen)
FY98
(Actual)

FY99(Actual)(128 firms)
Total

Growth rate (%)

FY99
FY2000 FY2000 FY2001
99/98(Actual) (Planned) (Planned) (Planned)(153 firms)

Share(%)

2000/99 2001/2000(85 firms)

FY2000(153
firms )(of AllFirms)

4,894

4,610

5,780

8,168

3,072

3,384

-5.8

41.3

10.1

100.0

3.1

Manufacturing

4,028

3,309

4,201

6,043

2,312

2,898

-17.9

43.8

25.3

74.0

7.1

Non-Manufacturing

865

1,302

1,579

2,126

760

486

50.4

34.6

-36.1

26.0

1.2

Materials

1,551

1,039

1,088

1,539

377

363

-33.0

41.4

-3.6

18.8

6.4

Processing & Assembly

1,911

1,862

2,704

4,167

1,705

2,180

-2.6

54.1

27.8

51.0

7.0

EnergyNon-Manufacturing
excluding Energy

567

409

409

337

231

355

-28.0

-17.7

54.1

4.1

0.8

865

1,302

1,579

2,126

760

486

50.4

34.6

-36.1

26.0

1.6

By sector

Note: foreign-affiliated firms are firms with over one-third foreign ownership

22 Development Bank of Japan Research Report/ No. 11

8. Information Technology Investment (Classified According to Principal Business
Sector)In this survey, investment in information technology is added as new questionnaire item, witheffective responses from 1,763 firms (effective response rate: 50.4%). For the purpose of thisreport, IT investment refers to the capital spending deemed as such by the respondent firms andchiefly comprises the investment projects aimed at utilizing computers and communicationequipment for improving the business efficiency and productivity of the firms.
In concrete terms, the questions are related to four factors: “tangible fixed assets,” “intangible
fixed assets and investments” (software development and other costs credited to assets rather
than accounted for as costs, and hereinafter referred to as “intangible fixed assets”), “leasing
contracts” (the amount of newly concluded leasing contracts and not that of leasing charges forthe fiscal year) and “other expenses” (PCs and other office equipment accounted for as costs).
Actual IT investment in FY 1999 and planned investment for FY 2000 in all industries
amount to ¥856.9 billion and ¥999.2 billion respectively. Its growth rate for FY 2000 (16.6%) ismuch higher than that of total capital spending in all industries (4.4%). By sector, IT investment
will grow faster than total capital spending in both manufacturing and non manufacturing (18.8%
and 15.4% against 17.8% and 0.5% respectively).
The ratio of IT investment in capital spending (actual figures for FY 1999) is largest in the
manufacturing sector: 7.0% for all industries, 11.1% for manufacturing and 5.8% for nonmanufacturing. By sub-sector, the ratio is largest in processing & assembly at 12.9%, as comparedwith materials (8.6%), energy (4.7%) and other non-manufacturing (6.5%).
The total of tangible fixed assets and leasing contracts amounts to ¥447.6 billion (3.7% ofcapital spending) for FY 1999 and ¥546.5 billion (4.3%) for FY 2000. The growth rate for FY
2000 (22.1%) will largely exceed that of capital spending as a whole (4.4%).
As percentage of IT investment, tangible fixed assets and leasing contracts account for morethan half (52.2% in actual figure for FY 1999), followed by intangible fixed assets (27.8%).
As regards tangible fixed assets and leasing, overall trend points to active investments related
to LAN and host computers. In non-manufacturing, active investments are observed for example
in retail, mainly for multi-media terminals and POS of convenience stores.
As for intangible fixed assets, investments related to personnel, accounting and other businessadministration systems are observed in most industries. Concrete investment projects in the
manufacturing sector include customer management systems and systems for the improvementof production efficiency such as SCM (supply chain management: a technique for integrated
business management from production to sales) and three-dimensional CAD in the processing &assembly sub-sector. Examples in non-manufacturing include investments in distribution systems,
design software and charging systems.

Development Bank of Japan Research Report/ No. 1123Overview of IT Investment(Units: 100 million yen, %)Amount of IT
Change inChange ininvestment
ITcapital(1,763 firms)
investment
spending
2000/99
2000/99
FY 99
FY 20000
actualplanned (1,763 firms) (1,763 firms)
8,569
9,992
16.6
4.4
3,027
3,596
18.8
17.8
5,543
6,396
15.4
0.5
888
991
11.6
17.7

Industrial sector
All industries
ManufacturingNon-manufacturing
Materials
Processing &assembly
Subsector Energy
Other nonmanufacturing

Share of
IT investment
FY 99
actual
100.0
35.3
64.7
10.4

FY 2000
planned
100.0
36.0
64.0
9.9

All industries(99/2000 growth)
Excl. leasing
ManufacturingNon-manufacturing
Materials
Processing &Sub- assembly
sector Energy
Other nonmanufacturing

FY 99
FY 2000
actualplanned
7.0
7.8
11.1
11.2
5.8
6.7
8.6
8.1

2,033

2,503

23.1

19.3

23.7

25.1

12.9

13.3

1,642

2,080

26.7

2.9

19.2

20.8

4.7

5.8

4,005

4,416

10.3

-0.9

46.7

44.2

6.5

7.3

Comparison between IT Investment and Capital Spending

Industrial sector

IT investment/
capital spending

Tangible fixed
assets in IT
investment(Tangible fixed
assets + leasing)in IT investment

FY99
actual2,083

FY2000planned2,795

FY99
actual
4,476

2,078
508
1,576
190
295

2,789
692
2,103
247
427

336
1,263

587
1,535

Capital spending
FY99
actual122,560

4,468
1,431
3,045
423
978

FY2000planned
5,465(22.1%)
5,448
1,767
3,698
497
1,241

107,417
27,19995,361
10,37915,736

FY2000planned127,909(4,4%)
111,972
32,03095,87912,217
18,778

873
2,201

1,321
2,407

35,043
61,40336,06460,849(Units: 100 million yen, %)(Tangible fixed
Tangible fixed
assets +assets/capitalleasing)/capitalspending
spending
FY99 FY2000
FY99
FY2000actual planned
actual planned
1.7
2.2
3.7
4.3
1.9
1.9
1.7
1.8
1.9

2.5
2.2
2.2
2.0
2.3

4.2
5.3
3.2
4.1
6.2

4.9
5.5
3.9
4.1
6.6

1.0
2.1

1.6
2.5

2.5
3.6

3.7
4.0

IT Investment by Component (Actual FY 1999 Figures)

Industrial sector
All industries
Planned FY 2000 figures in parentheses( )ManufacturingNon-manufacturing
Materials
Processing & assembly
Subsector Energy
Other non-manufacturing

Of which
Tangible fixed
assets24.3(28.0)
16.8
28.4
21.4
14.5
20.5
31.5

24 Development Bank of Japan Research Report/ No. 11(Unit: %)27.9(26.7)Of which
Intangible fixed
assets27.8(29.5)

30.5
26.5
26.2
33.6
32.7
23.4

29.9
26.7
30.9
27.6
11.2
34.1

Of which
Leasing contracts

Total
100.0
(100.0)
100.0
100.0
100.0
100.0
100.0
100.0

IT Investment by Component (Planned FY 2000 Figures)

Others 15.8%
Tangible fixed assets
28.0%

Intangible fixed assets
29.5%
Leasing contracts
26.7%

Development Bank of Japan Research Report/ No. 11

25

List of Back Numbers (Including JDB Research Report)
No.11

Survey on Planned Capital Spending for Fiscal Year 1999, 2000 and 2001 (This Issue)

No.10

Job Creation and Job Destruction in Japan, 1978-1998: An Empirical Analysis Based on EnterpriseData, September 2000

No.9

Recent Trends in the Japanese Economy: Information Technology and the Economy, September
2000

No.8

Trend of International Reorganization Affecting the Japanese Automobile and Auto Parts Industries,
June 2000

No.7

Survey on Planned Capital Spending for Fiscal Years 1999 and 2000, May 2000

No.6

Current Status and Future Perspective of the Japanese Remediation Industry: Technology andMarket for Underground Remediation, May 2000

No.5

Recent Trends in the Japanese Economy: The 1990s in Retrospect, March 2000

No.4

Destabilized Consumption and the Post-bubble Consumer Environment, February 2000

No.3

The Slump in Plant and Equipment Investment in the 1990s: Focusing on Lowered Expectations,the Debt Burden and Other Structural Factors, January 2000

No.2

Survey on Planned Capital Spending for Fiscal Years 1998, 1999 and 2000, November 1999

No.1

Corporate Strategies in Japan’s Semiconductor Industry: Implications of Development in Other
Asian Countries, November 1999

JDB Research Report
No.96

Recent Trends in the Japanese Economy: Focused on Fixed Investment and Capital Stock, August
1999

No.95

Efforts to Protect the Natural Environment in the United States and Germany: Environmental
Mitigation and Biotope Conservation, July 1999

No.94

Survey on Planned Capital Spending for Fiscal Years 1998 and 1999, June 1999

No.93

Towards the realization of ‘environmental partnership’: A survey of Japan’s environmental NPO
sector through comparison with Germany, June 1999

No.92

The Impact of Demographic Changes on Consumption and Savings, March 1999

No.91

Recent Research and Development Trends in Japanese Enterprises: Technology Fusion, March
1999

No.90

Recent Trends in the Japanese Economy: Prolonged Balance Sheet Adjustment, January 1999

No.89

Impact of Asset Price Fluctuations on Household and Corporate Behavior: A Comparison between
Japan and the U.S., December 1998

No.88

Survey on Planned Capital Spending for Fiscal Years 1997, 1998, and 1999, December 1998

No.87

Foreign Exchange Rate Fluctuations and Changes in the Input-Output Structure, November 1998

No.86

Structural Changes in Unemployment of Japan: An Approach from Labor Flow, November 1998

No.85

Recent Trends in the Japanese Economy: Characteristics of the Current Recession, August 1998

No.84

R&D Stock and Trade Structure in Japan, August 1998

No.83

Survey on Planned Capital Spending for Fiscal Years 1997 and 1998, August 1998

No.82

The Significance, Potential, and Problems of DNA Analysis Research: Establishing Public
Acceptance is Essential, May 1998

No.81

The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1996, 1997 and1998 Conducted in August 1997, March 1998

No.80Recent Trends in the Japanese Economy: Growth Base of the Japanese Economy, January 1998

No.79

Information Appliances: The Strength of Japanese Companies and Tasks for the Future, January
1998

No.78

Challenges and Outlook for the Japanese Machinery Industries: Impact of ISO14000 Series andEnvironmental Cost, January 1998

No.77

Current Conditions and Issues of Computerization in the Health Care Industry : For theConstruction of a Health Care Information Network, January 1998

No.76

Household Consumption and Saving in Japan, December 1997

No.75

The Direction of Japanese Distribution System Reforms: Strengthening the Infrastructure to
Support Diverse Consumer Choices, November 1997

No.74

Foreign Direct Investments by Japanese Manufacturing Industries and Their Effects on
International Trade, October 1997

No.73

The Impact of the Changing Trade Structure on the Japanese Economy: With Special Focus on the
Effects on Productivity and Employment, October 1997

No.72

An Analysis of Foreign Direct Investment and Foreign Affiliates in Japan, August 1997

No.71

Recent Trends in the Japanese Economy: Stock Replacement and New Demand as Aspects of
Economic Recovery, August 1997

No. 70 Corporate Fundraising : An International Comparison, June 1997
No. 69 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1996 and 1997
Conducted in February 1997, May 1997
No. 68 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1996 and 1997
Conducted in August 1996, August 1997
No. 67 An International Comparison of Corporate Investment Behavior: Empirical Analysis Using Firm
Date from Japan, France and the US, April 1997
No. 66 Housing in the National Capital: Analysis of the Market for Housing using Micro Data, March 1997
No. 65 The Environment for Locating Business Operations in Major East Asian Cities, January 1997
No. 64 Direction of Reconstruction of Business Strategy in the Chemical Industry, January 1997
No. 63 Reflection on Discussions Concerning Regulation of the Electric Power Industry: Deregulation of
the Electric Power Industry in Japan and Implication of Experiences in the United States,
December 1996
No. 62 Current Status and Future Perspective of the Japanese Semiconductor Industry, November 1996
No. 61 A Breakthrough for the Japanese Software Industry?: Responsiveness to Users’ Needs is the key,
October 1996
No. 60 Recent Trends in the Japanese Economy Focusing on the Characteristics and Sustainability of theCurrent Economic Recovery, September 1996
No. 59 Analysis of the Primary Causes and Economic Effects of Information: Related investment in the
United States and Trends in Japan, August 1996
No. 58 Selected Summaries of Research Reports: Published in FY 1995, June 1996
No. 57 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1995 and 1996
Conducted in February 1996, May 1996
No. 56 Recent Trends in the Japanese Economy, May 1996
No. 55 Issues Concerning the Competitiveness of the Japanese Steel Industry, February 1996
No. 54 Changes in the Financial Environment and the Real Economy, January 1996

No. 53 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1994, 1995 and1996 Conducted in August 1995, October 1995
No. 52 Current Economic Trends: Focusing on the Appreciation of the Yen and its Effects, October 1995
No. 51 Problems Concerning the International Competitiveness of the Petrochemical Industry, October
1995
No. 50 An Economic Approach to International Competitiveness, October 1995
No. 49 Selected Summaries of Research Reports Published in FY 1994, July 1995
No. 48 Strategies for Improving the Efficiency of the Japanese Physical Distribution System: Part2, July
1995
No. 47 Issues on International Competitive Strength of the Auto Industry, June 1995
No. 46 Problems Concerning the International Competitiveness of the Electronics and Electric Machinery
Industry, June 1995
No. 45 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1994 and 1995
Conducted in March 1995, June 1995
No. 44 Strategies for Improving the Efficiency of the Japanese Physical Distribution System, March 1995
No. 43 Capital Spending Recovery Scenario Cycle and Structure, August 1994
No. 42 Progress of International Joint Development between Industrialized Countries on the Private Level,
May 1994
No. 41 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1993, 1994 and1995 Conducted in August 1994 , November 1994
No. 40 Selected Summaries of Research Reports Published in FY 1993, June 1994
No. 39 Recent Trends in Japan’s Foreign Accounts, April 1994
No. 38 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1993 and 1994
Conducted in March 1994, April 1994
No. 37 Economic Zones and East Asia Prospect for Economic Activity Oriented Market Integration,
December 1993
No. 36 Japanese Corporate Responses to Global Environmental Issues, December 1993
No. 35 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1992, 1993 and1994 Conducted in August 1993, September 1993
No. 34 Structure of Profit to Capital in the Manufacturing Industry, September 1993
No. 33 Comparison of the Japanese and The U.S. Labor Markets, October 1992
No. 32 The Relative Competitiveness of U.S., German, and Japanese Manufacturing, March 1993
No. 31 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1992 and 1993
Conducted in March 1993, April 1993
No. 30 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1991, 1992 and1993 Conducted in August 1992, December 1992
No. 29 Flow of Funds in the 80s and Future Corporate Finance in Japan, November 1992
No. 28 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1991 and 1992
Conducted in February 1992, April 1992
No. 27 An Analysis of Foreign Direct Investment in Japan, March 1992
No. 26 Projection of Japan's Trade Surplus in 1995: Analysis of Japan's Trade Structure in the 80s, February
1992

No. 25 Intra-Industry Trade and Dynamic Development of The World Economy, November 1991
No. 24 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1990, 1991 and1992 Conducted in August 1991, September 1991
No. 23 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1990 and 1991
Conducted in February 1991, March 1991
No. 22 Trends of the Petrochemical Industry and its Marketplace in East Asia, March 1991
No. 21 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1989, 1990 and1991 Conducted in August1990,September 1990
No. 20 Deepening Economic Linkages in The Pacific Basin Region: Trade, Foreign Direct Investment andTechnology, September 1990
No. 19 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1989 and 1990
Conducted in February 1990, March 1990
No. 18 Petrochemicals In Japan, The US, and Korea an Assessment of Economic Efficiency, February
1990
No. 17 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1988, 1989 and1990 Conducted in August 1989, October 1989
No. 16 Impact of the EC Unification on Japan’s Automobile and Electronics Industries, August 1989
No. 15 Industrial and Trade Structures and the International Competitiveness of Asia’s Newly
Industrializing Economies, August 1989
No. 14 The Japan Development Bank Reports on Capital Investment Spending: Survey for Fiscal Years
1988 and 1989 Conducted in February 1989, March 1989
No. 13 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1987, 1988 and1989 Conducted in August 1988, September 1988
No. 12 Growing Foreign Investors’ Activities and the Future of Internationalization, September 1988
No. 11 Futures Tasks and Prospects for the Japanese Machine-Tool Industry, July 1988
No. 10 International Division of Labor in the Machine Industries Among Japan, Asia’s NICs and ASEANCountries, June 1988
No. 9

Trends of the Petrochemical Industry and its Marketplace in East Asia around Japan, May 1988

No. 8

The International Competitiveness of Japan and U.S. in High Technology Industries, April 1988

No. 7

The Japan Development Bank Reports on Private Fixed Investment in Japan, March 1988

No. 6

Economic Projections of the Japan’s Economy to the Year 2000, February 1988

No. 5

The Japan Development Bank Reports on Private Fixed Investment in Japan, September 1987

No. 4

Current Trends in the Japanese Auto Parts Industry in Overseas Production, July 1987

No. 3

Current Moves for Foreign Direct Investment into Japan, May 1987

No. 2

Overseas Direct Investments by Japanese Corporations, May 1987

No. 1

Current U.S. Consumption Trends, May 1987