Korean and Japanese foreign direct investment in ASEAN : a comparative study | |
| Author | Lee, Choong-ho |
| Call Number | AIT RSPR no. SM-93-28 |
| Subject(s) | Investments, Korean--ASEAN Countries Investments, Japanese--ASEAN Countries |
| Note | A research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration. |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-93-28 |
| Abstract | This study aims at comparing the characteristics of Korean and Japanese FDI in ASEAN. The two resource scarced countries are similar in that both have experienced similar paths of national economic development. But the two nations are different in that Japan is more developed than Korea, thus they probably have different FDI patterns and capabilities. This study attempts to answer what differences and similarities exist in FDI patterns between the Korea and Japan and what factors differentiate both countries' FDI pattern. Particularly, the investment patterns, FDI motives, nature of technology involved, and three categories of influencing factors (that is, push, pull, and facilitating factors) are investigated. Korean and Japanese FDls in ASEAN are characterized as follows: Korean FDI has been increasing very rapidly since 1986, heavily concentrated in manufacturing and natural resource oriented industries and carried out by firms in labor-intensive industries on a relatively small scale by the majority ownership joint venture. While Japanese FDI in ASEAN also has been increasing, the share in the region has however gradually decreased in relative terms, and furthermore diversifying from the manufacturing sector to the commercial/service sector. Considering the influencing factors, Korea is lagging behind in FDI competitiveness compared to Japan. From the viewpoint of FDI dynamics, however, both countries' FDls are showing a similar evolutionary pattern over time, from the natural-resource related industry oriented and labor-intensive industry oriented, to the medium-technology-intensive or capital-intensive industry oriented, finally to the commercial and service industry oriented. In this regard, the observed pattern of Korean FDI in 1980s seems to be noe replicating the investment experience of the Japanese FDI in the 1960s-1970s period, while ASEAN countries are now having a growth spurt similar to that Korea went through in these years. This FDI pattern evolution is closely related to the stages of national economic development and consequently the evolution of national competitive advantage sources. Those evolution of FDI patterns and national competitive advantages may constitute the dynamic theory of FDls from the more industrially-developed LDCs to the less industrially-developed LDCs. By integrating the characteristics of both countries' FDI patterns found in this investgation, a dynamic model of FDI patterns is proposed, which explains fairly well the dynamic characteristics of Korean and Japanese FDis. |
| Year | 1993 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-93-28 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration in International Business (Publication code = SM) |
| Chairperson(s) | Hyun, Jae-Ho |
| Examination Committee(s) | Ramanathan, K.;Atipol Bhanich Supapol |
| Scholarship Donor(s) | French Government. |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 1993. |