Anticipation or risk aversion? The effects of the EU enlargement on Korean trade and FDI activities in Central and Eastern Europe
Jong-Kun Jun and
Jae Hoon Hyun
Journal of East European Management Studies, 2014, vol. 19, issue 4, 486-503
This study attempted to identify how regional integration and spatial enlargement would affect firms’ strategic decisions from the outside of an integrated region. By analyzing data sets between 2000 and 2007 utilizing the gravity model, this study examined the specific properties of Korean trade and FDI flows to the participating 5 CEECs and 5 western European states before and after the enlargement of the EU. The initial findings show that the number of new investments increased significantly after the enlargement while the monetary amount of total investment appeared to be negligibly affected. Further examinations by firm size revealed that SMEs were responsible for increased Korea FDI after the enlargement while large companies did not make any contributions. Having different attitudes toward risk aversion and anticipating opportunities for exploitation were suggested as a possible explanation.
Keywords: EU; CEEC; enlargement; Korea; FDI; SME (search for similar items in EconPapers)
JEL-codes: F21 N23 (search for similar items in EconPapers)
References: Add references at CitEc
Citations Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:rai:joeems:jeems-2014-04-jun
Ordering information: This journal article can be ordered from
Rainer Hampp Verlag, Journals, Vorderer Lech 35, 86150 Augsburg, Germany. A subscripton is required to access pdf files. Pay per article is available at
Access Statistics for this article
Journal of East European Management Studies is currently edited by Thomas Steger, editor-in chief
More articles in Journal of East European Management Studies from Rainer Hampp Verlag
Series data maintained by Rainer Hampp ().