Study On The Characteristics And Strategies Of The Foreign Direct Investment From Korea In Harbin

After China and South Korea established diplomatic relation, the FDI from Korea has grown rapidly. Korea has became the 4th largest FDI sources for China. The economic and trade cooperation between South Korea and Harbin has developed very quickly as well. By the end of 2005, 540 Korean companies has invested in Harbin, with a total investment of 430 million US dollar. The number of companies is the 2nd largest of foreign companies in Harbin, while the investment amount is the 4th. The amount of trade between the two places has reached 240 million dollar in 2004, making South Korea the 3rd international trade partner of Harbin. The trade amount occupied more than a half of Heilongjiang province's total amount of trade with Korea. But there are still some problems with Korean companies in Harbin, such as some companies are not profitable enough, and the lifecycles are very short.This thesis researches on the Korean FDI through working on the Korean companies in Harbin. First, the thesis analyses the status characteristics and problems of Korean companies'FDI in Harbin, with a focus on Korean FDI characteristics. Then, through researching into the causes, models, especially the investment effection of the FDI in Harbin, using SPSS software and regression analysis method, the thesis analyses how the Korean FDI affects the employment, GDP, investment in firm assets by domestic companies (the amount of firm asset investment minus the FDI), and the international trade amount. Finally the thesis gives some suggestions on how to improve the investment environment in Harbin, especially for Korean FDI.