KIM Sangho    Department   Ritsumeikan Asia Pacific University  College of Asia Pacific Studies    Position   Professor
Language	English
Publication Date	2013/06
Type	Research paper (Academic/Professional Journal)
Peer Review	Peer reviewed
Title	Productivity and Timing of Foreign Direct Investment: Evidence Based on Korean Direct Investment in China
Contribution Type	Single Work
Journal	Journal of Market Economy
Volume, Issue, Page	42(2),pp.1-17
Details	This study investigated the value of waiting with regard to firms’ decision-making about foreign direct investment (FDI) in the context of productivity. To this end, a Cox (1972) proportional hazards model was applied to FDI data gathered from Korean manufacturing firms in China. Empirical results reveal that firms with average production led FDI, followed by more productive firms (which delayed their FDI to lower the probability of FDI failure) and by less productive firms (which had insufficient resources to implement such investment). The findings suggest that FDI delay time is a non-linear function of a firm’s productivity. Industry-wide regression analysis of two industries showed that the results held for the chemical industry.
ISSN	1229-2990