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The Effects Of Non-state-run Economy On Korean Firms' Choice Of Direct Investment Location In China

Posted on:2006-10-14Degree:DoctorType:Dissertation
Country:ChinaCandidate:Y Z DingFull Text:PDF
GTID:1116360155960524Subject:Political economy
Abstract/Summary:PDF Full Text Request
China has established several Special Economic Zones along the coastal area to attract foreign direct investments, since the renovation policy was employed in 1978. At the moment, in order to occupy this huge market of greatest potential, the enterprises from Europe, U.S. as well as Asia speed their steps to directly invest in China. In such circumstances, the Korean firms begin to boost their direct investment in China. With the establishing Sino—Korean diplomatic ties, Korean investment to China has been increasing rapidly. In 2002, China occupied the position of the largest investment target country for Korea and Korea was one of the main source countries of investment for China. Not only have emerged waves after waves of works about the FDI motivation of Korean businessmen, allocation of investing area and location effects among the Korean intellectuals, but Chinese pay a close attention to the Korean FID behavior mode as well.However, the majority of the works on the Korean direct investment to China are defective in the field of research, since they take samples from the northern and northeast China where see more Korean firms. The Korean businessmen's investment is dense in Northern China and North East China until the end of 1990's.Since then, their investment have changed apparently to East China, even the Middle and West China are given increasing investment. The old studies are not able to reflect the new characteristics of Korean businessmen's investment in China in 21th century. What is more, many Chinese scholars are studying the "key fact of area location deciding factors " at moment, but hardly anyone is discussing the phenomenon of FDI location choice change. Concerning the topics above mentioned, no specific work has been published and most works are on the deciding factors for FDI location, as far as the author has learned. As to the reason of FDI location transfer is still stay in the vacuum, which is a virgin to be explore and developed.Thereafter, the author takes a bold step to study the diversion of the Korean businessmen's choice of direct investment location.The study method of the thesis is to summarize the existing study fruit and supply and discuss the location deciding factors for FDI, in particular the influences of inter-regional non-state-run economy gap. First of all, the course of Chinese non-state-economy and its developing level are going to be discussed to illustrate gapsbetween the non-state-run economies in the four coast areas. Secondly, the characteristics of Korean businessmen's direct investment and the diversion of Korean businessmen investing area are going to be discussed. Based on the analysis mentioned above, the effects of non-state-run economy to FDI is studied on the theoretic level, in light of which, the correlation between the non-state-run economy and the diversion of the Korean businessmen's direct investment area will be given a regression analysis. Through applying a theoretical and empirical analysis to the development of non-state-run economy and the diversion of the Korean businessmen directly investing area, a conclusion is to be drawn. Finally, the further study direction is going to be pointed out after the discussion on the defects in this thesis. To sum up, the general method of the thesis is concluded as summarizing literatures → analyzing the non-state-run economy's gap among Chinese coastal areas → analyzing the characteristics of diversion of Korean investing area theoretically → analyzing the effect of non-state-run economy to foreign direct investment→a regression analysis on the correlation between non-state-run economy and the diversion of the Korean direct investment location.The significance of the thesis are shown as followed: firstly, since the formal diplomatic tie was established in 1992 between Korea and China, the Korean firms have changed their investment location with their knowledge and experiences in direct investment in China increased and the regional gap in terms of economic transformation in China widened. To analyze the features of Korean investment location transfer and the deciding factors for their choice of location will not only help guiding future FDI, but also provide reference to the potential Korean investors to China. Secondly, the full-scale analysis on gaps of non-state-run economy among Chinese coastal areas is conducive to a precise judgement on the gaps of non-state-run economies among the coastal areas since the reform and opening out. Finally, the insight on the relationship between non-state-run economy and the diversion of the Korean direct investment location will play an important guidance to Chinese current and future utilization of FDI.The Innovation of the thesis are possibly as following: first of all, it concerns a hardly discussed phenomenon, i.e., the transfer of Korean direct investment location in China, analyzes its characteristics on the basis of data. Secondly ,this thesis takes the initiative to describe the status quo of the non-state-run economy in the major four...
Keywords/Search Tags:FDI, Korean direct investment, non-state-run economy, location factor
PDF Full Text Request
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