TY - JOUR
T1 - The Role of Parent-Firm Characteristics in Affiliate Activities in South Korean Foreign Direct Investment
AU - Lee, Hongshik
AU - Sim, Soonhyung
N1 - Funding Information:
This work was supported by National Research Foundation of Korea Grant funded by the Korean Government (2013S1A3A2054749).
Publisher Copyright:
Copyright © 2015 Taylor & Francis Group, LLC.
PY - 2015/7/3
Y1 - 2015/7/3
N2 - We examine the role of parent-firm characteristics in affiliate activities, including local sales, exports to Korea, and exports to third countries. We find that parent-firm characteristics apparently affect the selling behaviors of affiliates. First, affiliate local sales increase with higher research and development (R&D) intensity and capital intensity but with lower parent wages. Affiliate exports to Korea decrease with higher capital intensity and lower wages, and affiliate exports to third countries rise with higher R&D intensity. We also analyze the extent to which affiliate activities are influenced by country and industry characteristics, and the results coincide with those of conventional motivations for foreign direct investment (FDI).
AB - We examine the role of parent-firm characteristics in affiliate activities, including local sales, exports to Korea, and exports to third countries. We find that parent-firm characteristics apparently affect the selling behaviors of affiliates. First, affiliate local sales increase with higher research and development (R&D) intensity and capital intensity but with lower parent wages. Affiliate exports to Korea decrease with higher capital intensity and lower wages, and affiliate exports to third countries rise with higher R&D intensity. We also analyze the extent to which affiliate activities are influenced by country and industry characteristics, and the results coincide with those of conventional motivations for foreign direct investment (FDI).
KW - multinational firms
KW - parent-firm characteristics
UR - http://www.scopus.com/inward/record.url?scp=84960108650&partnerID=8YFLogxK
U2 - 10.1080/1540496X.2015.1026711
DO - 10.1080/1540496X.2015.1026711
M3 - Article
AN - SCOPUS:84960108650
SN - 1540-496X
VL - 51
SP - S11-S22
JO - Emerging Markets Finance and Trade
JF - Emerging Markets Finance and Trade
ER -
