JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org.Abstract-The relationship between Japanese exports to the United States and distributional activities of Japanese affiliates in the U.S. wholesale trade sector is examined by using a sample of 44 three-digit Japanese exporting industries matched to U.S. industries. The statistical analysis provides evidence supporting the hypothesis that Japanese direct investment in distribution has strongly promoted Japanese exports to the U.S. markets.

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