Authors : Sanghan Yea
Abstract: Foreign direct investments have been done in the environment that wide international wage gaps still exit. On top of it, we see that worldwide regionalism has been proliferating. In this paper, we can reach the conclusion that these two factors are largely responsible for why many South Korean firms in capital-intensive industry have invested in developed countries to produce as much as or more valued goods than home. If the trend continues, such foreign direct investments will hollow out the South Korean economy not only quantitatively but also qualitatively. The companies may gain but the economy is to lose.
Sanghan Yea , 2005. Paradox of Developing Country Foreign Direct Investments: A Case of the South Korean Electronics Industry . Pakistan Journal of Social Sciences, 3: 68-74.