Liberalization of inward FDI also worked as a credible trigger for the indigenous private sector and encouraged efforts for strengthening competitiveness. Japan joined the OECD in April 1964 and needed to adhere to the regulation of capital flow liberalization, as stipulated in the Code of Liberalization of Capital Movements. The first and second liberalization waves of capital movements were undertaken in July 1967 and April 1973, which concluded most of the liberalization process. Although incoming FDI did not increase much, the liberalization process worked as a clock setter.