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성용모 동의대학교 경제경영전략연구소 2003 經濟經營硏究 Vol.1 No.1
This paper aims at deduction of Korean firm's direct investment strategy, and makes empirical test of Dunning's Eclectic paradigm in choosing foreign direct investments toward China. Empirical test is done based on 47 responses to a survey questionnaire. Through the use of regression, the results suggest that the Eclectic framework is warranted. The more internationally experienced firms have more FDI amounts toward China. But a factor of internalization advantage, IA, and country risk factor representing locational advantage show significantly adverse signs. This means Korean manufactures have tried to utilize the cheap labors of China, although they have recognized the country risk in China. Korean firms should concentrate their efforts on product discrimination through technical innovation to strenthen international competitiveness in China. To accomplish that, Korean firms have need to build up horizontal and vertical specialization with Chinese firms. And the most important task is to secure technical competitiveness by continuous technical developments