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Firm heterogeneity and location choice : The case of South Korean manufacturing multinationals

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  • Firm heterogeneity and location choice
  • Han, Jae-Joon; Lee, Hongshik; Lee, Insu
  • Korea Institute for International Economic Policy


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Title Firm heterogeneity and location choice
Similar Titles
Sub Title

The case of South Korean manufacturing multinationals

Material Type Articles
Author(English)

Han, Jae-Joon; Lee, Hongshik; Lee, Insu

Publisher

[Seoul]:Korea Institute for International Economic Policy

Date 2013
Journal Title; Vol./Issue Journal of East Asian Economic Integration:vol. 16(no. 4)(December 2012)
Pages 17
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Subject Industry and Technology < Manufacturing
Holding Korea Institute for International Economic Policy

Abstract

Previous studies of location choice have focused on country-level data more than firm-level data and been more concerned with host countries’ distinctive features than with firm heterogeneity. Therefore, they do not answer the question of who will go where in terms of location choice. To analyze the role of firm heterogeneity in determining location choice, we develop a theoretical model and analyze data on 3,644 Korean manufacturing multinationals operating in 87 countries between 1982 and 2006. The results of our conditional logit analysis indicate that not only host country characteristics but also firm heterogeneous factors such as productivity, labor intensity, and size have considerable influence on the decision of where to locate FDI