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The strategy of Korean multinational enterprise : Multiple versus single plant

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  • The strategy of Korean multinational enterprise
  • Hur, Jung; Lee, Jiwon; Hyun, Hea-Jung
  • Association of Korean Economic Studies


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Title The strategy of Korean multinational enterprise
Similar Titles
Sub Title

Multiple versus single plant

Material Type Report
Author(English)

Hur, Jung; Lee, Jiwon; Hyun, Hea-Jung

Publisher

[Seoul, South Korea] : Association of Korean Economic Studies

Date 2013-02
Pages 28
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Subject Economy < Economic Administration
Economy < Direct Investment
Holding Association of Korean Economic Studies
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Abstract

Using firm-level panel data for Korean MNEs, we make a distinction between being the only affiliate of a parent firm and being the one of the multiple affiliates of a parent firm. Comparisons of correlations between purchases and sales of each group of the foreign affiliates show distinctive difference in the motivations of FDI and the multinational activities, due to the difference in the number of affiliates they possess. Our main empirical results in this paper suggest that productive Korean MNEs not only enlarge their host countries of FDI but also enlarge the number of affiliates in a same host country. We interpret these FDIs are motivated by enjoying information and network advantages by gathering in one location.