• Title/Summary/Keyword: FDI Strategy

Search Result 42, Processing Time 0.021 seconds

A Study on the Attracting Strategy of FDI in Gwangju and Jeonnam Region (외국인직접투자 유치전략에 관한 연구 -광주.전남지역을 중심으로-)

  • Shim, Jae-Hee;Baek, Hyung-Yeop
    • International Commerce and Information Review
    • /
    • v.13 no.1
    • /
    • pp.145-175
    • /
    • 2011
  • This paper suggests the strategy for attracting FDI in Gwangju and Jeonnam region using the secondary data collected by homepage of Ministry of Knowledge Economy, Gwangju City, and Jeollanam-do. The strategy for attracting FDI in Gwangju and Jeonnam region is as follows: First, the local governments of Gwangju and Jeonnam must progressively attract FDI by adjusting to the Korean government's regional industry policy direction. Second, in order to attract FDI consistently, the local governments of Gwangju and Jeonnam must enhance the ability of local officials to attract FDI. Third, in order to attract FDI effectively, the local governments of Gwangju and Jeonnam must build a complete system to support FDI. Fourth, in order to attract FDI effectively, the local governments of Gwangju and Jeonnam have to apply different investment incentives according to FDI effectiveness. Fifth, the local governments of Gwangju and Jeonnam must consistently support foreign companies in order to induce FDI expansion by foreign companies which have already invested in the Gwangju and Jeonnam regions. Finally, in order to attract FDI consistently, the local governments of Gwangju and Jeonnam must improve the negative images and living environments of the Gwangju and Jeonnam regions.

  • PDF

A Study on Moderating Effects of Competitive Strategy between Determinants of FDI and Management Performance (해외직접투자 결정요인과 경영성과 간 경쟁전략의 조절효과연구)

  • Lim, Yong-Taek;Goh, Byeong-Su
    • Asia-Pacific Journal of Business
    • /
    • v.7 no.1
    • /
    • pp.43-57
    • /
    • 2016
  • This study examined the relationship between determinant factors of FDI and management performance, and tested moderating effects by competitive strategy. Questionnaires were gathered from 113 respondents, but only 92 valid copies were analyzed through SPSS WIN 18.0. The major empirical results are as follows: In hypothesis 1, Firm-Special Advantage impacted on Management Performance strongly, Internal Advantage impacted on Management Performance strongly, and Locational Advantage impacted on Management Performance strongly. In Hypothesis 2, the moderating effects by competitive strategy on the relationship between determinant factors of FDI and management performance were tested through multiple regression. The result of the moderating effects by competitive strategy were found to be insignificant. Implications of the finding as well as the limitations of this study are also discussed.

  • PDF

The distribution channel, strategic factor and firm performance: Evidence from FDI enterprises

  • BUI, Lan Thi Hoang;NGUYEN, Dat Ngoc
    • Journal of Distribution Science
    • /
    • v.19 no.10
    • /
    • pp.35-41
    • /
    • 2021
  • Purpose: Research on the development of distribution channels and the strategy will help businesses develop competitiveness in the market. At the same time, the excellent effect of distribution channels and the outstanding implementation of business strategies will help optimize firm performance. Therefore, this study helps to evaluate the influence of distribution channels, and strategy factors on the performance of FDI enterprises in Vietnam. Research design, data, and methodology: Research using quantitative method with PLS-SEM model based on 210 samples using Smart-PLS3. software. The survey subjects are corporate managers who understand the strategies, distribution channels, and performance in Vietnamese FDI enterprises. Results: The analysis results show that strategy factors have a positive effect on firm performance, and distribution channel also has a positive impact on firm performance. This result also indicates that distribution channels activity as an intermediary between strategy and firm performance. Conclusion: The study also gives some policy implications on strategy and distribution channels to improve firm performance. The strategic implementation of finance, human resources, risk, innovation, and diversification of distribution channels are implications for improving firm performance in FDI enterprises. In addition, the research has contributed to the relationship between the distribution channels and firm performance.

Japan's Export Regulations and Korea's Investment Attraction Strategy: Focusing on the Parts and Materials Industry

  • Lee, Min-Jae;Jung, Jin-Sup;Lee, Jeong-Eun
    • Journal of Korea Trade
    • /
    • v.24 no.3
    • /
    • pp.55-72
    • /
    • 2020
  • Purpose - In this paper, we provide recommendations for Korea's long-term direction and strategic measures to attract inward foreign direct investment (FDI) in response to Japan's export regulations. In doing so, we analyze the current situation and characteristics of trade between Korea and Japan, focusing on the parts and materials industry, which is particularly affected by Japan's trade regulations. Design/methodology - Based on the analysis of five successful inward FDI cases (e.g. Toray, IGK, Delkor, GlobalWafers, DuPont) and statistic trend review in the parts and materials industry, we consider various factors pertaining to successful inward FDI in Korea and propose valuable investment attraction strategies. Findings - For a successful investment attraction strategy, we studied some statistical trends in the internal and external environments of the parts and materials industry and successful investment attraction cases in Korea. We have found that in order to increase the probability of success in attracting investment, we need a mid-to long-term strategy considering multiple factors such as "Production-oriented, Demand-linked, Global Value Chain (VGC) linked, and Policy-linked investment attraction." Originality/value - We suggest several specific measures and important strategic implications for the Korean government and firm's managers to attract inward FDI successfully.

An Empirical Study on Performance Determinants Influencing Re-investment of Multinational Enterprises: Focusing on Multinational Enterprises which Invested Local R&D Centers in Korea (다국적기업의 재투자에 영향을 미치는 성과요인에 관한 실증 연구: 국내진출 다국적기업 중 R&D센터 보유기업을 중심으로)

  • Kim, Jae-Kyung;Lee, Bong-Soo
    • Korea Trade Review
    • /
    • v.44 no.1
    • /
    • pp.87-99
    • /
    • 2019
  • Recently there are sharp increase in number of studies related with facilitation of Inward-FDI or Multinational Enterprises invested in Korea region. The most of studies are mainly purposing to survey - 1)how Korea Government makes counter plan and assistance policy to make foreign capital and Inward-FDI more attractively and aggressively, 2)what is the new framework or system for Inward-FDI policy, 3)what is economic effect of Inward-FDI, 4)what are determinants or conclusive factors of FDI in Korea. Under this situation, the goal of this report is to find out the new way for Multinational Enterprises to reinvest continuously thru getting their better investment performances on several factors including Marketing Competence, Management Ability, Localization Management Skill, Business Management Strategy, and R&D Competitiveness which would be much more important determinants influencing re-investment of Multinational Enterprises in Kora. This report based on the empirical result and comprehensive analysis will eventually help policy makers to implement the appropriate strategy and support Multinational Enterprises to proceed positive circle's re-investment activity in the end.

The Key Factors of Successful Foreign Direct Investment (FDI) in China

  • Wei-Keon ZHANG
    • The Journal of Industrial Distribution & Business
    • /
    • v.14 no.11
    • /
    • pp.27-35
    • /
    • 2023
  • Purpose: China's economy has changed considerably in recent decades. By delivering a comprehensive knowledge of the elements that support successful foreign direct investment (FDI) in China and practical insights for multinational firms operating in this dynamic environment, this research offers a new perspective and sets itself apart from previous studies. Research design, data and methodology: It is necessary to give a thorough overview of the body of information on successful FDI in China, which justifies the adoption of a systematic literature review. The study may use a wide range of studies because of this methodology, which guarantees that inferences have a solid and supported basis in data. Results: The findings in the present study have clarified how China's government policies and regulatory framework affect foreign direct investment (FDI). Previous studies have indicated that regulatory changes can significantly impact FDI. For instance, more foreign direct investment (FDI) has been drawn to liberalized industries such as technology and finance. Conclusions: In conclusion, for foreign direct investment (FDI) to be successful in China, it is essential to consider these four factors: local partnerships and cultural adaptation, market research and entry strategy, regulatory environment and policy support, and risk management and contingency planning.

Impact of Foreign Direct Investment on Power Sector: An Empirical Study with Refrence to India

  • Maran, K.;Anitha, R.
    • East Asian Journal of Business Economics (EAJBE)
    • /
    • v.3 no.1
    • /
    • pp.8-16
    • /
    • 2015
  • In the later quarter of the twentieth century, the need for foreign capital is realized among the various countries of the world. Developing countries especially developed multi-pronged strategies to attract foreign capital into the country. One such strategy is the adoption of liberalization policy. Almost all the developing countries started opening their economy, out of the compulsion, to achieve faster rate of economic growth and development. Even a communist country like China adopted liberalization policy as a strategy for accelerated economic growth during 1979. India also joined the race by 1991, when the government announced the policy of liberalization. The importance of FDI extends beyond the financial capital that flows into the country. The huge size of the market in this sector and high returns on investment are two important factors in boosting FDI inflows to power sector. 100 percent FDI is allowed under automatic route in almost all the sub sectors of power sector except the atomic energy. Major foreign investment is made in this sector during 2000 to 2009 is Mauritius with an investment of US$ 4490.96 i.e., 4.24 percent of the total FDI inflows into the country during the period. The estimation of future FDI flow shows a marginal decline in the year 2010. Then from 2011 to 2015 onwards upward trend of FDI was observed.

A Study on the Global Value Chain (GVC) of Indian Market and Foreign Direct Investment (FDI) in the Age of 4IR (4IR 시대의 글로벌 밸류체인(GVC) 활용과 인도시장 FDI 성과에 관한 연구)

  • Kim, Chang-Bong
    • Korea Trade Review
    • /
    • v.44 no.1
    • /
    • pp.115-127
    • /
    • 2019
  • In recent years, the Indian market has gained worldwide attention in the global trading business environment. Korean companies are also seeking to enter the indian market, and their foreign trade investment strategy is based on the Global Value Chain(GVC). In this study, we examine difference from traditional investment strategy to GVC investment strategy in the age of 4IR(fourth industrial revolution) through using POLS model(pooled least square), FEM(fixed effect model), and REM(randomized effect model). Based on the analysis of 84 monthly data related to the FDI and international trade effects between Korea and India, the following results were found. As Korean companies increased their share of export to the Indian market and export to the Indian market, the number of new companies directly invested in overseas market increased. However, the amount of import into the Indian market was relatively low in relation to the number of new companies directly in overseas markets. As a result of analyzing the investment strategy of the GVC in India, the GVC has shifted from manufacturing to process upgrading to enter the GVC on Smile Curve.

The Recent Evidence of Japanese Foreign Direct Investment (FDI): Focusing on Ownership Structure, Entry Mode, and Location Choices (아시아 금융위기 이후 일본의 외국인직접투자 변화: 진입모드, 소유구조, 입지선택에 관하여)

  • Park, Young-Ryeol;Kwak, Jooyoung;No, Jung-Hyun
    • International Area Studies Review
    • /
    • v.15 no.2
    • /
    • pp.3-23
    • /
    • 2011
  • Existing studies have argued that, compared to the 1990s, the Japanese foreign direct investment (FDI) in the 2000s became multi-faceted in terms of investment motivation, ownership structure and entry mode, and diversification strategy. We have conducted a cross-sectional analysis and compared our results with the recent findings. We have found that the Japanese FDI in the mid 2000s became globally focused and regionally diversified. Ownership strategy and entry mode of the Japanese FDI in the Asian countries shows a remarkable shift from joint venture to wholly-owned subsidiary. In contrast, the preference of greenfield investments was observed consistently across regions. It seems that, after the Asian financial crisis, the Japanese firms began to re-optimize global FDI strategy and to regionally differentiate investments.

China's Global Investment Policy and Precondition for China Money FDI in Korea (중국의 해외투자 정책과 중국자본 유치의 전제조건)

  • Park, Moon-Suh;Kim, Mea-Jung
    • International Commerce and Information Review
    • /
    • v.14 no.1
    • /
    • pp.171-195
    • /
    • 2012
  • This paper is aimed to prepare some policy-measures which is helpful for China Money FDI in Korea by analysing FDI-related data and political strength and weakness between the two countries and studying fundamental preconditions required for Korea's China Money FDI strategies. As the result of research, key preconditions found out can be summarized as follows; First, because China-Korea economic relationship is largely insufficient in a complementary view as well as in a cooperative state level, Korea should remove the threats in advance that could lead two countries to unlimited competition, and then expand to a relationship of trust between China and Korea. Second, Korea, at least from the perspective of China, may not be an attractive investment destination. Therefore, it is necessary to take advantage of Korea's FTA-expansion-strategy opportunities such as Korea-US FTA which has entered into force recently. Third, because China always has a lot of alternative investment opportunities among world instead of Korea, so Korea should not overlook the fact that China has the bargaining power in large part related on the investment conditions in Korea, such as investment field, investment size, how to invest China Money to Korea, etc. Fourth, if Korea's FDI policy is trapped in the existing rules of the political frame, and moreover Korea can not have the role of rule breaker, it will be difficult to expect Korea's China Money FDI results compared to those efforts. Fifth, if Korea will execute China Money FDI strategies in the context of overestimating the China Power or China Money, it should be noted that Korea may have unexpected losses lead to a national by reason of outward and quantitative investment or bad investment.

  • PDF