Economic integration and foreign investment : Japanese and Korean strategies in Central Europe 
James Darby, Queen’s University of Belfast
JEL classification : F150, F200, L620
In the countries of Central and Eastern Europe the status and performance of the motor manufacturing industry before 1990 reflected the shortcomings of the command economy in its production of consumer goods, both in the nature and quality of the vehicles assembled, and in the manufacturing process itself. Before and after 1990 the demand for passenger cars was considerable. At the same time, the growth of investment by foreign firms, including a number of large-scale vehicle assembly projects, has greatly influenced the process of economic reform. Japanese and Korean projects exemplify two contrasting approaches to the search for economic reform through inward investment. If the hesitancy of the Japanese investor is justified it is likely that Daewoo and similar investors will lose heavily, but if the opposite occurs, the Japanese motor industry will have suffered a setback in its strategy of global development.