Three seminal papers by Froot and Stein (1991), Kogut and Chang (1996) and Blonigen (1997) analyze Japanese FDI in the U.S. during the 1980s. Both Froot and Stein (1991) and Blonigen (1997) analyze the role of real exchange rates, the former using aggregate data, while the latter uses sectoral data. Kogut and Chang (1996) analyze Japanese electronic firms’ investments in the U.S.