Location decision of Korean manufacturing FDI: A comparison between Korean chaebols and non-chaebols

Young Ryeol Park; Jeoung Yul Lee; Sunghoon Hong

doi:10.1080/1226508X.2011.559332

Location decision of Korean manufacturing FDI: A comparison between Korean chaebols and non-chaebols

Young Ryeol Park, Jeoung Yul Lee, Sunghoon Hong

Department of Business Administration

Research output: Contribution to journal › Article › peer-review

5 Citations (Scopus)

Abstract

This study analysed the location selection determinants of Korean foreign direct investment (KFDI) from the perspectives of OLI paradigm and resource- and knowledge-based views. The study involved a sample of 1911 Korean multinational enterprises (MNEs) and their 3095 foreign subsidiaries during the period of 1999 2004. Specifically, the study compared the differences of foreign direct investment (FDI) location decisions (1) between less-developed and developed countries (LDCs and DCs) and (2) between chaebols and non-chaebols. The results showed that the partitioned sample model of chaebols versus non-chaebols was found to have more detailed effects on the location decision between the two regions than the combined full sample model. In addition, the results showed that there are clear, effectual differences for subsidiary scale and prior host country experience between chaebols and non-chaebols.

Original language	English
Pages (from-to)	123-138
Number of pages	16
Journal	Global Economic Review
Volume	40
Issue number	1
DOIs	https://doi.org/10.1080/1226508X.2011.559332
Publication status	Published - 2011 Mar

All Science Journal Classification (ASJC) codes

Business and International Management
Economics, Econometrics and Finance(all)
Political Science and International Relations

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