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Comparison of FDI into China between Korean firms and ethnic Chinese firms

Author

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  • Doowon Lee
  • Youngrok Cheong

Abstract

Foreign direct investment (FDI) into China contributed greatly to the current rapid economic development of China. Many efforts have been given to more thorough analysis of entry mode of FDI in China. Due to the lack of available relevant data, however, micro level analysis has rarely included firm level analysis or research, which includes variables such as detailed industrial sector especially in manufacturing sector, investment size, equity share, and regional distribution of FDI. In this respect, this paper focuses on analyzing both entry mode and cross country comparison of Korean and overseas ethnic Chinese firms' FDI into China. The cooperative analysis would provide a variety of information for further analysis of identifying success and failure factors. Two different kinds of data sources are used in this analysis: one is highly aggregated lump sum data, and the other is more detailed survey level data. This paper will also contrast differences in business behaviors of Korean firms and overseas ethnic Chinese firms investing in China.

Suggested Citation

  • Doowon Lee & Youngrok Cheong, 1999. "Comparison of FDI into China between Korean firms and ethnic Chinese firms," Global Economic Review, Taylor & Francis Journals, vol. 28(1), pages 28-53.
    • Handle: RePEc:taf:glecrv:v:28:y:1999:i:1:p:28-53
    DOI: 10.1080/12265089908449750
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    Cited by:

    1. Shaoming Cheng & Roger Stough, 2006. "Location decisions of Japanese new manufacturing plants in China: a discrete-choice analysis," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 40(2), pages 369-387, June.
    2. repec:rre:publsh:v:38:y:2008:i:3:p:395-415 is not listed on IDEAS
    3. Shaoming Cheng, 2007. "Structure of Firm Location Choices: An Examination of Japanese Greenfield Investment in China," Asian Economic Journal, East Asian Economic Association, vol. 21(1), pages 47-73, March.

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