Outward FDI from South Korea: The Relationship Between National Investment Position and Location Choice

Chapter
Part of the The Academy of International Business book series (AIB)

Abstract

Dunning ’s investment development cycle (IDC) assigns investment positions to countries based on their inward and outward investment portfolios and their stages of economic development . This chapter models the evolution of South Korean outward foreign direct investment based on the IDC perspective. We differentiate between two changing paths of outward FDI: (1) FDI to developed countries, with a change from technology-seeking FDI to market -seeking FDI and (2) FDI to developing countries from efficiency-seeking FDI to market-seeking FDI, while accounting for South Korea ’s own investment position within the investment cycle. We compiled South Korean FDI data from 1980 to 2014. The data include FDI by country, industrial area and firm motivation. Our analysis of South Korean economic development extends the IDC logic by considering evolving FDI motivations.

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Copyright information

© The Author(s) 2018

Authors and Affiliations

  1. 1.Warwick Business SchoolCoventryUK
  2. 2.Leeds University Business SchoolLeedsUK

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