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The Role of Outward FDI in Creating Korean Global Factories

Author

Listed:
  • Peter J. Buckley

    (Leeds University Business School)

  • Nigel Driffield

    (University of Warwick)

  • Jae-Yeon Kim

    (Portsmouth Business School)

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.

Suggested Citation

  • Peter J. Buckley & Nigel Driffield & Jae-Yeon Kim, 2022. "The Role of Outward FDI in Creating Korean Global Factories," Management International Review, Springer, vol. 62(1), pages 27-52, February.
    • Handle: RePEc:spr:manint:v:62:y:2022:i:1:d:10.1007_s11575-022-00462-5
    DOI: 10.1007/s11575-022-00462-5
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    Cited by:

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    2. Leena Ajit Kaushal, 2022. "Institutional and economic determinants of Indian OFDI," Cogent Economics & Finance, Taylor & Francis Journals, vol. 10(1), pages 2147648-214, December.
    3. Yao Li & Yugang He, 2024. "Unraveling Korea’s Energy Challenge: The Consequences of Carbon Dioxide Emissions and Energy Use on Economic Sustainability," Sustainability, MDPI, vol. 16(5), pages 1-29, March.

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