China's technological catch-up and structural changes of Korean investment in China

In the globalized and knowledge-based world, science and technology (S&T) is becoming more important location determinants of FDI, but the relation between the development of science and technology of a host country and the structure of inbound FDI is unknown. This paper finds that the development of science and technology can increase a country's chance to attract foreign investment and heavily affect the structure of inbound FDI. China's technological catch-up plays an important role in the structural changing of Korean investment in China to more technology-intensive in structure.