Determinants of Korean Outward Foreign Direct Investment: How Do Korean Firms Respond to the Labor Costs of Host Countries?

2020 ◽  
Author(s):  
Hanbyul Ryu ◽  
Young SIk Jeong
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Outward Foreign Direct Investment ◽  
Labor Costs ◽  
Host Countries

scholarly journals Trends and Determinants of Korean Outward FDI

2009 ◽  
Vol 27 (1) ◽  
pp. 126-154 ◽  
Author(s):  
Jungmin Kim ◽  
Dong Kee Rhee
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Multinational Firms ◽  
Multinational Firm ◽  
Location Decisions ◽  
Outward Foreign Direct Investment ◽  
Outward Fdi ◽  
Host Countries ◽  
Distinctive Features

This paper examines the trends and determinants of Korean outward foreign direct investment and the extent to which location decision explanation needs to be nested within the general theory of the multinational firm. In the context of investment development path developed by Dunning and Narula, we examine the important factors for the location decisions of Korean outward foreign direct investment, considering host countries at very different stages of economic development. In line with this objective, we test empirically the determinants of Korean outward investment using macro economic factors of host countries. Thus, we identify several factors that impact on such trends and develop hypotheses that could explain the phenomenon generically. We test our hypotheses using official Korean outward FDI data collected from 1994 to 2005. The behavior of Korean multinational firms shows several distinctive features. As a result, we find that the dynamic effects of economic development have influenced on the changes of outward FDI characteristics.

scholarly journals Harmony in Diversity: Can the One Belt One Road Initiative Promote China’s Outward Foreign Direct Investment?

2018 ◽  
Vol 10 (9) ◽  
pp. 3264 ◽  
Author(s):  
Lili Kang ◽  
Fei Peng ◽  
Yu Zhu ◽  
An Pan
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Outward Foreign Direct Investment ◽  
Host Countries ◽  
Cultural Convergence ◽  
One Belt One Road ◽  
Institutional Cooperation ◽  
The One ◽  
Matching Techniques ◽  
Econometric Technique

This paper investigates the effect of the One Belt One Road (OBOR) initiative on China’s outward foreign direct investment (OFDI) using a dataset of all host countries for the period of 2010–2015. The employed econometric technique combines a difference-in-differences estimator with matching techniques. The results show that China’s OFDI in OBOR countries is about 40% higher than in non-OBOR countries. After the initiative, the OFDI from China increases by 46.2% in OBOR countries. However, after controlling for the heterogeneity across OBOR and non-OBOR countries using the matching approach, the significance of the increasing effect caused by the OBOR initiative disappears. We also find the OBOR initiative diminishes the resource-seeking motivation and improves the market-seeking motivation of China’s OFDI. Our results cast doubts on the infrastructure-led and institution-based strategy of the OBOR initiative, but support the boosting effect of the OBOR initiative on institutional cooperation and cultural convergence. Thus, the OBOR initiative is a sustainable continuation and development of the long tradition of economic, institutional, and cultural convergence with the OBOR countries, rather than a temporary policy shock.

scholarly journals The Influence of Outward Foreign Direct Investment on Enterprise Technological Innovation

2021 ◽  
Vol 2021 ◽  
pp. 1-13
Author(s):  
Chenggang Wang ◽  
Tiansen Liu ◽  
Jinliang Wang
Keyword(s):  
Foreign Direct Investment ◽  
Technological Innovation ◽  
Low Income ◽  
Direct Investment ◽  
Vital Role ◽  
Outward Foreign Direct Investment ◽  
Host Countries ◽  
Chinese Enterprises ◽  
Lag Effect ◽  
The Impact

As the scale of China’s outward foreign direct investment (OFDI) continues to expand, more and more scholars have begun to discuss the influence of OFDI on enterprise technological innovation. In order to be able to deeply explore the impact of enterprises’ OFDI activities on enterprise technological innovation, this paper combines relevant enterprise data from 2015 to 2017 and uses the new method to test the “technological innovation effect” produced by the OFDI of Chinese enterprises. Finally, this paper concluded that the development of OFDI activities of enterprises can promote the improvement of the level of technological innovation of enterprises, and this promotion has a lag effect. R&D-type OFDI activities play a vital role in promoting the ability of technological innovation of enterprises. Compared with low-income host countries, investment in high-income host countries has a greater effect on promoting the ability of technological innovation of enterprises.

China's Expanding Outward Foreign Direct Investment in Southeast Asia and its Impacts

2013 ◽  
Vol 05 (04) ◽  
pp. 87-98
Author(s):  
Hong ZHAO
Keyword(s):  
Foreign Direct Investment ◽  
Southeast Asia ◽  
Economic Integration ◽  
Direct Investment ◽  
Outward Foreign Direct Investment ◽  
Host Countries ◽  
Chinese Investment ◽  
Labour Division ◽  
The Impact

The surge in China's outward foreign direct investment (OFDI) has attracted considerable attention, largely projected as “neo-colonialism” in Africa and having potential effects on the host countries. In Southeast Asia, however, Chinese investment provides capital, employment, income and regional labour-division. This article analyses the nature and distribution of these investments, the main drivers of China's OFDI to Southeast Asia and the impact on economic integration in this region.

Location Determinants of Indian Multinationals: A Multilevel Analysis

2019 ◽  
Vol 21 (5) ◽  
pp. 1200-1217
Author(s):  
Munmi Saikia
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Outward Foreign Direct Investment ◽  
New Wave ◽  
Host Countries ◽  
Firm Level ◽  
The Past ◽  
Country Level ◽  
Location Determinants ◽  
Multilevel Linear Regression

The study investigates a simultaneous act of country-level determinants and firm-level heterogeneity on location distribution of the new wave of outward foreign direct investment (OFDI) from India. Indian firms are nested within host countries. Therefore, the current study employs mixed multilevel linear regression model to analyse multilevel and longitudinal data. Using firm-to-destination data, the study finds that location distribution of Indian multinationals is simultaneously driven by firm-level heterogeneity and country-level determinants. The study shows that location determinants of the recent wave of OFDI of Indian firms are significantly different from the past wave.

Country-level macro-corporate governance and the outward foreign direct investment

2018 ◽  
Vol 45 (1) ◽  
pp. 107-123 ◽  
Author(s):  
Tong Tong ◽  
Tarlok Singh ◽  
Bin Li
Keyword(s):  
Corporate Governance ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
National Level ◽  
Political Stability ◽  
Outward Foreign Direct Investment ◽  
Host Countries ◽  
Data Set ◽  
Content Type ◽  
Country Level

Purpose China’s outward foreign direct investment (ODI) has become a recent phenomenon in that China is now rated as the world’s third largest country for ODI. Previous studies have found that China’s ODI is driven by the attractions of natural resources and overseas markets. Yet these studies have ignored the role of corporate governance at a national level, the paper aims to discuss these issues. Design/methodology/approach The Kaufmann et al. (1999) data set is used in our study and the data sample have covered the period from 2003 to 2012 for a comprehensive set of 171 host countries. Random effects model are applied in the paper and population average model is used to check the robustness of the results. Findings The authors find that the effects of macro-corporate governance are distinct in different sample periods, as well as in geographical and economic regions, when attracting China’s ODI. Indicators such as political stability, the absence of violence, regulatory effectiveness, regulatory quality, the rule of law and the control of corruption are found to be positively related to China’s ODI. Originality/value This is one of the first papers to investigate the relationship between macro-corporate governance indicators and China’s ODI. 171 countries are included in the data sample and sub-sample tests are also conducted.

scholarly journals Institutions and Outward Foreign Direct Investment

2015 ◽  
Vol 46 (1) ◽  
pp. 101-119 ◽  
Author(s):  
Artur Klimek
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Institutional Environment ◽  
Political Stability ◽  
Outward Foreign Direct Investment ◽  
Host Countries ◽  
Institutional Conditions ◽  
Governance Quality

AbstractThis paper explores the influence of the quality of a host country’s institutional environment on outflows from that country of foreign direct investment. The main finding of this paper is that such quality does play an important role, particularly with respect to governance quality and political stability. This implies that better institutional conditions may reduce undesirable outflows of capital, and the quality of those institutions may impact FDI effectiveness in host countries.

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