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Korean direct investment in manufacturing, , : Its patterns and determinants--an empirical analysis

By Yui Kimura and Hae Kyoung Lee

Abstract

This article presents the results of a rigorous empirical study of the patterns and the determinants of Korean FDI in manufacturing industries. Using the theoretical approach proposed by Ozawa (1979) within the broader framework of the mainstream FDI theory, this paper confirms the uniqueness of Korean FDI, and shows that its major determinants are at odds with those of FDI from more advanced countries but akin to those of early Japanese FDI made in the early 1970s.Foreign direct investment Korea strategic advantages locational advantages

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