Title: Role of Japanese TNC in Samoa economy: a study of Yazaki (Samoa) Ltd.

Authors: Anand Chand

Addresses: Faculty of Business and Economics, School of Management and Public Administration, University of the South Pacific, Suva, Fiji

Abstract: A transnational corporation (TNC) can make a big economic impact on a small island country. In the literature, there are two positions on economic performance of small island states. On the one hand, there is the pessimistic position that argues that 'smallness' is a disadvantage to small island countries. On the other hand, there is the optimistic position that argues that 'smallness' is an advantage and small island countries can exploit these advantages. Discussions of the role of TNCs in economic development of small island countries were once very fashionable but such debate has somewhat faded away from the literature over the last two decades. This paper will bring back the debate and highlight the economic and employment contribution made in Samoa by Yazaki (Samoa) Ltd. It is a subsidiary of a Japanese TNC Yazaki Corporation (Japan) Ltd. and was established in 1990 when the Yazaki (Australia) Ltd. closed down its assembly plant and relocated to Samoa. The Samoan experience thus provides good lessons to other small island countries pursuing economic growth via TNCs.

Keywords: small island countries; small islands; developing states; SIDS; economic development; exports; global shifts; production shifts; economy; Samoa; Samoan Islands; automotive systems; automobile components; Yazaki Corporation; Japan; economic benefits; GDP; gross domestic product; employment; SPARTECA; South Pacific; regional trade agreements; economic co-operation agreements; Australia; New Zealand; constraints; challenges; transnational corporations; TNCs; economic impacts; economic performance; island states; smallness; assembly plants; plant relocation; economic growth; business innovation; business research.

DOI: 10.1504/IJBIR.2012.048786

International Journal of Business Innovation and Research, 2012 Vol.6 No.5, pp.556 - 572

Published online: 12 Dec 2014 *

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