The Order of Korean Firms’ Chinese Sequential Investments and the Production Effects

• 발행기관: 한국자료분석학회
• 저자명: Hyung Rok Yim
• 간행물 정보: 『Journal of The Korean Data Analysis Society (JKDAS)』Vol.19 No.2, 627~637쪽, 전체 11쪽
• 주제분류: 자연과학 > 통계학
• 파일형태: PDF
• 발행일자: 2017.04.30

영문 초록

The paper tackles three interesting issues concerning on Korean parents’ Chinese sequential investments. First, why they pursue a sequential investment strategy is scrutinized. Second, it is tackled if the sequential investment strategy can provide strategic advantages, in terms of production effect. Third, once sequential investments are necessary in Chinese competitive market, it is examined if earlier follow-up investments can contribute to Korean parents’ production effects. For examining the issues, a finitely repeated game model is constructed. The predictions of the model is that Korean parents are able to leapfrog competitors through the sequential investment strategy and the earlier the follow-up investments are done, the higher the production effect will be. Also, the scale of sequential investments have positive effects on Korean parents’ production effects. These predictions are empirically supported and thus one can conclude that Korean investors in Korea owe to their sequential investment strategy in China.

목차

1. Introduction

2. Sequential Investment: Its Sequence and Net Present Value

3. Testable Propositions

4. Empirical Framework

5. Conclusion

키워드

production effect sequential investment entry order scale and China