Immigrant Small Business and International Economic Linkage: A Case of the Korean Wig Business in Los Angeles, 1968–1977

Abstract

This article investigates factors that have contributed to the growth of the import-export business among Asian immigrants. The central argument is that the development of Asian immigrants’ import-export business has been closely related to the increasing economic linkages between Asian countries and their countrymen in the United States. Such economic linkages are a product of the global economic restructuring whereby some developing countries of Asia have become major exporters of low cost/low price consumer goods to the United States. The Korean immigrants’ wig business in Los Angeles is studied as a case of contemporary import-export trade among Asian immigrants, with major findings summarized as follows: first, the increased reliance of the United States on imported goods by the 1970s led to a rapid growth of the export-oriented industry in South Korea; second, wigs became the major export item of South Korea due to its cheap labor force and government-aid loans to the wig industry, third, a strong vertical integration developed between Korean wig manufacturers in South Korea and Korean importers, wholesalers, and retailers in the United States – that integration provided Korean immigrants with initial business opportunities in the U.S. economy, particularly in the low-income minority areas.