The Race between the Czech Republic and Turkey for Hyundai's Investment in Europe
This study examines why the Hyundai Motors Corporation (HMC) decided to invest in the Czech Republic in 2005 rather than investing in Turkey, within a conceptual framework based on mainly Dunning's, Porter's and Knickerbroker's earlier works. The paper argues that locational advantages, for instance, in terms of infrastructure and industry clusters or proximity to target markets could be far more important than anything else especially for the automobile industry while a foreign direct investment (FDI) decision is made. Such other issues as state capacity and skillful bargaining could also be introduced to the analysis but definetely after the analysis of the major fundamental reasons behind FDI attraction. Therefore, to understand such complexities, the race between the CzechRepublic and Turkey for the Hyundai's USD1.5-billion manufacturing investment for the European market would be a useful case.This study, argues that the country-specific locational advantages that Turkey could offer to HMC at that time were not comparable with those of the Czech Republic. This was the major reason why the company decided to invest in the latter. As a result, we argue that those governments aiming to attract FDI should first focus on creating such an environment which provides significant locational advantages for multinational corporations.
Volume (Year): 3 (2011)
Issue (Month): 4 (December)
|Contact details of provider:|| Postal: 1568 Merivale Rd. Suite # 618, Ottawa, Ontario, Canada K2G 5Y7|
When requesting a correction, please mention this item's handle: RePEc:oul:tncr09:v:3:y:2011:i:4:p:71-86. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Denny Liao)The email address of this maintainer does not seem to be valid anymore. Please ask Denny Liao to update the entry or send us the correct email address or (Jen Ma)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.