IDEAS home Printed from https://ideas.repec.org/a/sae/chnrpt/v54y2018i2p175-193.html

Korea’s Foreign Direct Investment in the Automotive Industry in China

Author

Listed:
  • Jungmin Lee
  • Jai S. Mah

Abstract

This article examines the impact of foreign-invested enterprises in the development of China’s automotive industry. It particularly focuses on the case of foreign direct investment (FDI) by a Korean firm, namely, the Hyundai Motor Company, in China. The Chinese government’s policy regarding the automotive industry allowed China’s domestic manufacturers to benefit from technology transfer, as foreign firms were not allowed to invest exclusively in China without a partnership. The contribution of Korea’s investment in China’s automotive industry would comprise the creation of job opportunities, technology transfer and the development of the automobile parts industry. Korea’s investment in the automotive industry of China has policy implications for China and other developing countries trying to expand their technology-intensive industries.

Suggested Citation

  • Jungmin Lee & Jai S. Mah, 2018. "Korea’s Foreign Direct Investment in the Automotive Industry in China," China Report, , vol. 54(2), pages 175-193, May.
    • Handle: RePEc:sae:chnrpt:v:54:y:2018:i:2:p:175-193
    DOI: 10.1177/0009445518761079
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0009445518761079
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0009445518761079?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. repec:wbk:wbpubs:23969 is not listed on IDEAS
    2. Tain-jy Chen & Yi-Ping Chen, 1995. "Foreign Direct Investment," Industry and Innovation, Taylor & Francis Journals, vol. 2(1), pages 57-68.
    3. Haley, Usha C.V. & Haley, George T., 2013. "Subsidies to Chinese Industry: State Capitalism, Business Strategy, and Trade Policy," OUP Catalogue, Oxford University Press, number 9780199773749.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bayari, Celal, 2020. "South Korean Economy and the Free Trade Agreement with China," MPRA Paper 102938, University Library of Munich, Germany, revised 21 Jun 2020.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jai S. Mah & Myeong Yeo, 2014. "The Role of the Government in R&D Promotion and the Development of Technology-Intensive Industries in China," China Report, , vol. 50(2), pages 91-107, May.
    2. Roger Farrell, 2000. "Japanese Foreign Direct Investment in the World Economy 1951-1997," Asia Pacific Economic Papers 299, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
    3. Yao, Shujie & Wei, Kailei, 2007. "Economic growth in the presence of FDI: The perspective of newly industrialising economies," Journal of Comparative Economics, Elsevier, vol. 35(1), pages 211-234, March.
    4. Su, Zhong-qin & Xiao, Zuoping & Yu, Lin, 2019. "Do political connections enhance or impede corporate innovation?," International Review of Economics & Finance, Elsevier, vol. 63(C), pages 94-110.
    5. Günseli Berik & Yana Meulen Rodgers & Joseph E. Zveglich, 2004. "Does Trade Promote Gender Wage Equity? Evidence from East Asia," Palgrave Macmillan Books, in: William Milberg (ed.), Labor and the Globalization of Production, chapter 7, pages 146-178, Palgrave Macmillan.
    6. Florence Marque, 1998. "Dimensions économique, institutionnelle et monétaire de l'intégration régionale en Asie orientale," Revue Tiers Monde, Programme National Persée, vol. 39(156), pages 835-860.
    7. Lloyd, P. J. & MacLaren, Donald, 2000. "Openness and growth in East Asia after the Asian crisis," Journal of Asian Economics, Elsevier, vol. 11(1), pages 89-105.
    8. Facchini, Giovanni & Liu, Maggie Y. & Mayda, Anna Maria & Zhou, Minghai, 2019. "China's “Great Migration”: The impact of the reduction in trade policy uncertainty," Journal of International Economics, Elsevier, vol. 120(C), pages 126-144.
    9. Brewster, Rachel & Brunel, Claire & Mayda, Anna Maria, 2016. "Trade in Environmental Goods: A Review of the WTO Appellate Body's Ruling in US‒Countervailing Measures (China)," World Trade Review, Cambridge University Press, vol. 15(2), pages 327-349, April.
    10. Defever, Fabrice & Reyes, José-Daniel & Riaño, Alejandro & Varela, Gonzalo, 2020. "All these worlds are yours, except india: The effectiveness of cash subsidies to export in nepal," European Economic Review, Elsevier, vol. 128(C).
    11. Jeon, Yongbok & Park, Byung Il & Ghauri, Pervez N., 2013. "Foreign direct investment spillover effects in China: Are they different across industries with different technological levels?," China Economic Review, Elsevier, vol. 26(C), pages 105-117.
    12. Miguel D. Ramirez, 2024. "Foreign Capital and Economic Growth in Mexico: Further Time-Series Evidence, 1970-2020," Research in Applied Economics, Macrothink Institute, vol. 16(2), pages 37-48, December.
    13. Loren Brandt & Feitao Jiang & Yao Luo & Yingjun Su, 2022. "Ownership and Productivity in Vertically Integrated Firms: Evidence from the Chinese Steel Industry," The Review of Economics and Statistics, MIT Press, vol. 104(1), pages 101-115, March.
    14. Myrto Kalouptsidi, 2014. "Detection and Impact of Industrial Subsidies: The Case of World Shipbuilding," NBER Working Papers 20119, National Bureau of Economic Research, Inc.
    15. Boeing, Philipp, 2016. "The allocation and effectiveness of China’s R&D subsidies - Evidence from listed firms," Research Policy, Elsevier, vol. 45(9), pages 1774-1789.
    16. Liu, Wen-Hsien & Tsai, Pan-Long & Tsay, Ching-Lung, 2015. "Domestic impacts of outward FDI in Taiwan: Evidence from panel data of manufacturing firms," International Review of Economics & Finance, Elsevier, vol. 39(C), pages 469-484.
    17. Sergio G. Lazzarini, 2015. "Strategizing by the government: Can industrial policy create firm-level competitive advantage?," Strategic Management Journal, Wiley Blackwell, vol. 36(1), pages 97-112, January.
    18. Wang, Z. & O'Brien, R., 2003. "The coastal-inland income gap in China from 1991 to 1999: the role of geography and policy," Discussion Paper Series In Economics And Econometrics 301, Economics Division, School of Social Sciences, University of Southampton.
    19. Bingqiang Li & Shan Wang & Nannan Dong & Jinzhi Li & Xi Li & He Yu, 2023. "Empirical Analysis of Subsidy Industrial Policy’s Effect on Export Innovation in the Chinese Manufacturing," SAGE Open, , vol. 13(4), pages 21582440231, November.
    20. Lu, Heyu & Li, Jiayang & Wu, Zongfa & Zeng, Yufeiyang, 2025. "Rethinking energy allocation: Can green finance be the solution? — Evidence from machine learning method," Energy, Elsevier, vol. 332(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:chnrpt:v:54:y:2018:i:2:p:175-193. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.