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Exploring South Korean Foreign Direct Investment Motives and State-Level Location Decisions: US Evidence 1995-2008

Jae Kim Orcid Logo, Myropi Garri Orcid Logo, Malcolm Beynon Orcid Logo, David Pickernell Orcid Logo

Thunderbird International Business Review

Swansea University Authors: Jae Kim Orcid Logo, David Pickernell Orcid Logo

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DOI (Published version): 10.1002/tie.22433

Abstract

This study uses a novel application of panel fuzzy-set qualitative comparative analysis (fsQCA) in the international management field. utilizing a unique database capturing reasons for foreign direct investment (FDI), and state-level location, we explain location decisions of high-technology South K...

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Published in: Thunderbird International Business Review
ISSN: 1096-4762 1520-6874
Published: Wiley 2025
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URI: https://cronfa.swan.ac.uk/Record/cronfa68588
Abstract: This study uses a novel application of panel fuzzy-set qualitative comparative analysis (fsQCA) in the international management field. utilizing a unique database capturing reasons for foreign direct investment (FDI), and state-level location, we explain location decisions of high-technology South Korean (henceforth Korean) multinational enterprises (MNEs), when first entering the United States of America (henceforth US), from 1995 until the 2008 financial crisis. Various home country conditions, combined with a desire for technological upgrading, encouraged firms to seek locational advantages. Additionally, rather than assuming FDI to be driven by a single purpose over time, the addition of regional characteristics allows a typology of reasons for Korean FDI to be developed. We show evolving Korean FDI trends in the US with home country and regional perspectives interacting to attract FDI into US states with different characteristics, arguing this is consistent with US policy seeking to attract inward investment to foster economic development.
Keywords: FDI motive, high-technology firms, investment development cycle, Korea, location choice
College: Faculty of Humanities and Social Sciences
Funders: Swansea University