between Japan, the NIEs and ASEAN. Table 3 indicates that from 1986 to 1988 the Japanese investment to the ASEAN countries made noticeable growth and a turn of the NIEs' investment to the ASEAN countries occurred in 1989.

In this paper, we choose the household electric and electronic industry (HEEI) among manufacturing industries and examine flows of trade and investment in the industry between Japan, Korea and Thailand.

## Trade Flows

We present some tables which show the trade volume of the HEEI between Japan, Korea and Thailand from 1985 to 1990 by using Japanese Exports & Imports published by the Japan Tariff Association, the statistics presented by the Electronic Industries Association of Japan and Statistics of Electronic & Electrical Industries published by the Electronic Industries Association of Korea.

(1) Japan and Korea (Table 5 - Table 6)

Tracing the trade flow between Japan and Korea in the HEEI, we can find that export from Japan to Korea plunged in 1989 and 1990 after making growth until 1988. A decrease in parts export is noticeable while the export of manufactured products is rather stable.

The HEEI export from Korea to Japan made a steep decline after increasing until 1989. A reason of this decline will be explained later. Tracing the flow until 1989, we can find a noticeable increase of manufactured products, audio and visual products in particular. In table 11 indicating movements in the export of manufactured products, we can find the Korean export to Japan surpassed the Japanese export to Korea around 1987. Although this is due in large part to market protection policies taken by the Korean government against the Japanese products, we cannot deny at the same time that it is also due to an increase in a competitiveness of the Korean manufactured products. Table 13 and 14 give us movements of competitiveness indices - (EX-IM) / (EX+IM) - for the HEEI manufactured products of Japan, Korea and Thailand. From these tables, we can find the fact that the Korean competitiveness in household electric products surpassed the Japanese one in 1985 and the reversal in competitiveness in audio visual products took place in 1987. This means that, while the both countries specialize in the exports of HEEI, Korea's specialization is rather higher than the Japanese. We can also find that, in terms of export specialization of manufactured products, the Japanese and Korean HEEI seem to follow a Flying-Wild-Geese-development pattern.

On the other hand, the Korean HEEI depends considerably for the supply of parts on Japan and therefore, in the HEEI trade, Korea is enjoying surpluses in manufactured products while suffering from deficits in parts.

(2) Japan and Thailand (Table 7 - Table 8)

As for the trade between Japan and Thailand, exports and imports have been on upward trends since 1987 and the trade of parts has had a large share as can be found in the trade between Japan and Korea. Due to a rise in the living standards of people in Thailand, the import of manufactured products from Japan is increasing although its share is smaller than the parts import.

In the meantime, the export from Thailand to Japan started to increase in 1988 although its volume is small. The manufactured product exports to Japan became noticeable by 1989.