The Role of Outward FDI in creating Korean global factories

Abstract

This study examines Korean foreign direct investment (FDI) in the context of the organization and development of local firms into global factories. Specifically, we explore the relationship between FDI decisions and the nature of Korea’s imported and exported goods. We argue that the global factory approach explains the mechanisms by which FDI can lead to technological upgrading. We employ a unique dataset that incorporates information on FDI motive from South Korea, as well as the unit value of traded goods within sectors. Our findings indicate that FDI location and motive vary by trade destinations and trade unit prices; something that has not received attention in existing literature.

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Item Type:	Article
Authors/Creators:	Buckley, PJ https://orcid.org/0000-0002-0450-5589 Driffield, N Kim, J-Y
Copyright, Publisher and Additional Information:	© The Author(s) 2022. This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article's Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article's Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/.
Keywords:	South Korea; Internationalization strategies; Global value chains (GVCs); Foreign direct investment (FDI) motivation; Location choice; Global factories; Korean multinational firms
Dates:	Published: 6 April 2022 Published (online): 6 April 2022 Accepted: 12 January 2022
Institution:	The University of Leeds
Depositing User:	Symplectic Publications
Date Deposited:	17 Jan 2022 10:59
Last Modified:	29 Mar 2023 17:14
Status:	Published
Publisher:	Springer
Identification Number:	10.1007/s11575-022-00462-5
Open Archives Initiative ID (OAI ID):	oai:eprints.whiterose.ac.uk:182584

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The Role of Outward FDI in creating Korean global factories

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