Korea Trade Review (무역학회지)

Korea Trade Research Association (한국무역학회)
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Country Characteristics of Greenfield FDI Outflows from Korea, China, and Japan: Focusing on Country Risks

한·중·일 3개국의 그린필드형 해외직접투자의 대상국 특성에 대한 실증분석: 국가위험을 중심으로

  • Park, Danbee (Department of International Trade, Kangwon National University) ;
  • Lee, Hyun-Hoon (Department of International Trade, Kangwon National University)
  • 박단비 (강원대학교 국제무역학과) ;
  • 이현훈 (강원대학교 국제무역학과)
  • Received : 2019.02.03
  • Accepted : 2019.02.26
  • Published : 2019.02.28
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Abstract

This paper analyses the characteristics of partner countries when multinational firms of Korea, China, and Japan make greenfield FDI in foreign countries. Particularly, this paper applies the gravity model for greenfield FDI flows for the period 2003-2017. This paper finds that multinational firms of Korea, as compared to those of China and Japan, are very significantly and negatively responsive to political risks of partner countries. In contrast, multinational firms of Korea as well as those of China and Japan tend to make greater amounts of greenfield FDI in financially high-risk countries. This result indicates that multinational firms from these three countries should take financial risks of partner countries into more serious consideration.

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References

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