Korea Trade Review (무역학회지)

Korea Trade Research Association (한국무역학회)
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An Empirical Study on the Determinants of Korean FDI focused on China& Asean six Countries for years 2016 through 2019

한국 기업의 해외직접투자 모형설정에 관한 실증 연구(중국&아세안6개국 중심:2016년-2019년 중심)

  • Lee eung kweon (Department of Global management, Konyang University)
  • 이응권 (건양대 글로벌경영학부)
  • Received : 2020.11.25
  • Accepted : 2021.02.25
  • Published : 2021.02.28
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Abstract

The main purpose of this research is to analyze the changes in investment motivation by year through time series and cross-sectional analysis of the factors and investment decisions of Korean manufacturing companies. According to the investment pattern for Asean from the 1980s to the 19th, the first expansion period was 82 to 86, the average increase in overseas investment for securing foreign raw materials due to the second oil shock, and the second expansion period was a gradual increase in exports to the U.S. in 1987 to 1996. During the first stagnation period, direct investment in Asean stagnated in the aftermath of the 1998-05 Asian crisis, and in the third expansion period, part of the production facilities invested in China were relocated to Asean, increasing Asean's investment to become Korea's largest manufacturing investment in 17. Korea's proportion of investment in Asean surpassed that of mass investment since 10 years ago, and the proportion of investment in manufacturing sector has been transferred from China to Asean, and after 17 years, it has served as an overseas production base connecting China. As such, The main purpose of the research will be to extract the determinant factors and key factors for overseas direct investment and investment patterns in conjunction with global manufacturing companies' production base relocation and investment trends through empirical analysis. This research paper gave basic reference to the motivation and determinant of investment 16 years ago, and analyzed the changes in investment motivation by year and content through empirical analysis, contributing some reasonable purpose to the decision of companies and policy makers interested in overseas direct investment.

Keywords

Acknowledgement

This work was supported by the 2020 konyang University Research Grant.

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