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‘Avoiding the Neighbours’: The National/Global Development Strategy of the Korean Automobile Industry

In: Cars, Carriers of Regionalism?

Author

Listed:
  • Marc Lautier

Abstract

The South Korean automobile industry has grown extraordinarily quickly during the three last decades, with production increasing from 37,000 units to more than 2.8 million units between 1975 and 1996. At the end of this period, South Korea was ranked 5th within the world industry, with a 5.3 per cent share of global production. This development is almost unparalleled in recent history. Over the last 50 years only Japan has succeeded in building such a large automobile industry so quickly. The Korean experience is also remarkable as far as internationalization is concerned. Economic theory has traditionally insisted on the competitive advantages built on the domestic market to explain firms’ international expansion (from Hymer to Chandler), notably using empirical evidence from the automobile industry (Cusumano, 1989; Maxcy, 1982; Doner, 1991; Jenkins, 1987; Sachwald, 1995). Emphasis has also been put on the advantages of developing on a regional basis.2

Suggested Citation

  • Marc Lautier, 2004. "‘Avoiding the Neighbours’: The National/Global Development Strategy of the Korean Automobile Industry," Palgrave Macmillan Books, in: Jorge Carrillo & Yannick Lung & Rob Tulder (ed.), Cars, Carriers of Regionalism?, chapter 14, pages 218-232, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-52385-2_14
    DOI: 10.1057/9780230523852_14
    as

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