Export and GDP Elasticities of Outward Foreign Direct Investment of Korea: 1981-2018

• 발행기관: 한국무역연구원
• 저자명: Koo-Woong Park
• 간행물 정보: 『무역연구』제15권 제3호, 145~167쪽, 전체 23쪽
• 주제분류: 경제경영 > 무역학
• 파일형태: PDF
• 발행일자: 2019.06.30

영문 초록

Purpose - Korea has increased its outward foreign direct investment (OFDI) remarkably in the 1990s and the 2000s. We aim to identify the specific features of Korean OFDI with the sample of 67 countries for the period of 1981-2018. Design/methodology/approach - We draw first scatter diagrams for the distribution of correlations between OFDI and export and also between OFDI and host country GDP. As an analytic approach, we run panel regressions with fixed effects in log-transformed values. Findings - Korean OFDI moves positively with Korean exports to host countries, except in CIS and North America, supporting the complementary theory of OFDI with exports. Furthermore, OFDI moves positively even more strongly with host country GDP in most regions except Oceania. Current account balances of host countries generally have negative effects on Korean OFDI. Research implications or Originality - The study results imply that OFDI does not necessarily crowd out exports. Secondly, the positive effects of host country GDP on Korean OFDI provide an indirect support for the application of gravitational theory to OFDI. This research also indicates that Korean firms carried out strategic asset-seeking OFDI in the developed countries of Europe and North America while market- or low cost-seeking OFDI in the less developed regions.

목차

Ⅰ. Introduction

Ⅱ. Literature Review

Ⅲ. Methodology

Ⅳ. Results and Discussion

Ⅴ. Conclusions and Recommendations

키워드

Complementary Theory Distribution of Correlations Outward Foreign Direct Investment Panel Regression Strategic Asset