The changing nature of South Korean FDI to China

Jae-Yeon Kim, Nigel Driffield and Yama Temouri

International Journal of Multinational Corporation Strategy, 2016, vol. 1, issue 3/4, 269-287

Abstract: The purpose of this paper is to explore the changing motives and location choice patterns of foreign direct investment (FDI) from South Korea to China. Prior to the global financial crisis of 2008, South Korean multinational enterprises (MNEs) invested in China for efficiency-seeking motives in order to take advantage of low costs. While evidence is emerging that MNEs from developed countries are now investing in China for market-seeking reasons, no such evidence exists for MNEs from Asia. This study exploits a unique data set to uncover a change in strategy by South Korean MNEs in China, both in terms of motive and location, something that has received little attention in the international business literature.

Keywords: South Korea; China; foreign direct investment; FDI motivation; location choice; global financial crisis; multinational enterprises; MNEs. (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijmcst:v:1:y:2016:i:3/4:p:269-287

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