Browse

Internationalization of Firms: An Analysis of South Korean FDI in India

Cited 0 time in Web of Science Cited 0 time in Scopus
Authors
Gill, Anita
Issue Date
2014-01
Publisher
Institute of Economic Research, Seoul National University
Citation
Seoul Journal of Economics, Vol.27 No.1, pp. 87-114
Keywords
Outward FDIKoreaIndiaEmerging economiesPolicy
Description
This is the revised version of the paper which was presented in the 21st SJE-KERI International Symposium on “Understanding

Economic Growth in India: Implications for India-Korea Cooperation,” September 3, 2013, Seoul National University, Seoul.
Abstract
International flows of capital in the form of FDI are being recognized as a means of promoting economic development. Outward FDI from emerging economies enhances the competitiveness of their companies by providing access to strategic assets, technology, skills, natural resources and markets in improving their efficiency. The present paper focuses on motivating factors of outward FDI from a fast growing emerging economy - South Korea - to another emerging economy - India, over the period 2000-01 to 2012-13. FDI flows between such emerging economies challenge the well established theory which operates on the premise that the pattern of international flow of investment is from developed to developing countries. Though both South Korea and India have fairly liberal FDI policy regimes, yet the flow of FDI from Korea to India is a small percentage of its total FDI inflows. South Korean firms have penetrated those sectors in India where other countries were investing relatively less. The prime motivation for investing in India is the large size of market and low wages in the host country. But it seems that only a liberal policy regime might sometimes not be enough to attract FDI, as qualitative aspects, too, play their roles. However, there is still scope for furthering business cooperation between these two countries.
ISSN
1225-0279
Language
English
URI
http://hdl.handle.net/10371/91048
Files in This Item:
Appears in Collections:
College of Social Sciences (사회과학대학)Institute of Economics Research (경제연구소)Seoul Journal of EconomicsSeoul Journal of Economics vol.27 no.1~4 (2014)
  • mendeley

Items in S-Space are protected by copyright, with all rights reserved, unless otherwise indicated.

Browse