Overseas Dividends Rising Rapidly for Japanese Firms
Japanese companies are receiving a lot more income from their overseas operations. Profits from overseas subsidiaries that are not re-invested locally are returned to the parent company in the form of dividends and technology licensing fees. Based on calculations using BOJ inflow/outflow statistics, overseas income rose 52% in the first quarter of 2006 to Y1.3 trillion. For the full year, overseas income is expected to increase to Y5.8 trillion, up Y2 trillion from year-earlier levels. The extra inflows accompany an expansion in overseas production in manufacturing sectors, including autos and electrical goods 日経.