• International Area Studies Review
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• v.16 no.1
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• pp.327-349
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• 2012

This paper examined the strategic inward foreign direct investment and business performance in free economic zone. attractive of segment and country's competitive advantage were as proxy for the matrix of appropriateness. The marketing differentiation, inducement promotion, incentive, and business support were as proxy for the business performance. Based on the analysis of one hundred twenty cases, the following results were found. First, based on the attractive of segment and country's competitive advantage, the types of four segments was drawn. Second, the segment 4 have a significantly difference on their business performance. Third, strategic foreign direct investment have a significantly high difference on their marketing differentiation but a significantly low difference on their business support. Finally, the business performance, in order of performance, have a significantly difference on their marketing differentiation, inducement promotion, incentive, and business support. Limitation and suggestions for further are also highlighted.

• The Journal of Information Technology
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• v.3 no.4
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• pp.73-88
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• 2000

As the globalization of world market proceeds, the importance of foreign direct investment grows bigger than before A comparative analysis on foreign direct investments among developed and developing countries makes clear that every county has different incentives for foreign direct investments. This implies a country should improve environments on her appropriate field, to induce foreign direct investments, The openness of other capital markets such as bank loans and portfolio investments turns out to have no direct effects on the foreign direct investments.

• Journal of Korea Technology Innovation Society
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• v.13 no.3
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• pp.446-458
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• 2010

All countries of the world have been spurring foreign direct investment consistently for securing of economic growth and growth engines, and Korea is no exception. Korea has been stimulating investment of high quality through various political support and the government has been publicizing it as an achievement. Based on the most of previous studies analyzed the results of foreign direct investment only on the view of domestic economy, this study supposes that foreign direct investment influences positively on management and innovation performance on companies, and evaluated effects of foreign direct investment by using Propensity score matching method. Analysis shows that foreign direct investment has positive influence on management and innovation performance before matching them. However, after matching them, the most statistical significance disappears. Consequently, foreign direct investment has limited effect on company's performance comparison on initial assumption. 'This study indicates that incentive policy of foreign direct investment would need to be amended, because effect of incentive policy was limited for firm's performance.

• International Area Studies Review
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• v.15 no.3
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• pp.145-174
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• 2011

Attracting foreign direct investment in the mining sector becomes a key factor for the continuing economic growth for mining-dependent developing countries. This paper attempts to identify the determining factors that attract FDI inflows into the mining sector. Based on previous conceptual studies, the authors have attempted empirical analyses on a panel of 40 mining countries for the period 1996-2009. These empirical results are the first of their kind given the variables employed are arguably the most comprehensive and exhaustive to date. The empirical results show that market size, trade openness, quality of mined products, quality of infrastructure, regulatory quality, and perceived economic risk associated with the country are positively related to investments in mining. Whereas, tariff rate, corporate tax rate, extent of corruption, and political instability are negatively related to FDI inflows in the mining sector. The empirical results also show that developing countries tend to attract greater amounts of FDI in the mining sector compared to their developed counterparts.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.15 no.5
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• pp.2732-2742
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• 2014

For the past decades, role of foreign direct investment has increased. Specially, East Asia and BRICs has experienced rapidly economic growth by FDI. Nevertheless, most of developing countries suffer from poverty. This paper empirically explores the impacts of FDI on economic output using a cross-country analysis based on data from 88 developing countries for the years 1990-2011. To this end, FDI is explicitly included in production function as production factor. Cross-country regression of income level is estimated with the country's human development, population growth, physical accumulation, and FDI as explanatory variables. Main finding of this paper is that FDI has a positive and significant impact on economic growth.

• KDI Journal of Economic Policy
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• v.36 no.1
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• pp.1-42
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• 2014

This study analyzes how heterogeneous across firms' productivity level the effects of foreign direct investment (FDI) on the productivity of firms in a host country are. The study uses firm level data over 2000~2009 in South Korea and takes a quantile regression approach to estimate FDI's heterogeneous effects on the invested firm ('direct effects') and other domestic firms in the industry to which the invested firm belongs ('intra-industry spillover effects'). Major empirical results are as follows. In manufacturing sector, FDI has positive and statistically significant direct effects on the invested firm. In addition, the higher the quantiles of firms' productivity level are, the larger the positive productivity effects are. FDI also has positive and statistically significant intra-industry spillover effects on domestic firms in low quantiles of productivity while it has negative and statistically significant or insignificant spillover effects on those in high productivity quantiles. In service sector, on the other hand, Sufficient evidence is not found that FDI has statistically significant direct effects or intra-industry spillover effects. Taken together, the study suggests that FDI has heterogeneous effects on the productivity of firms in host country, depending on the firms' productivity level and sector.

• International Commerce and Information Review
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• v.16 no.3
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• pp.183-202
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• 2014

The time-lag effect of the policy was analyzed focusing on the financial subsidies which are the incentive for attracting the foreign direct investment for the Korean industries from 2007 to 2012. The analysis results show that Korea's policy for attracting the foreign direct investment has the time leg of 2 or 3 years after the implementation of the policy. If the goal is to attract the foreign investment or introduce the advanced industrial technologies, the tax reduction system would be better. However, if the goal is to get the short term effects such as job creation or regional development, the direct subsidy or the financial support (financing) or the lexicographic characteristics of the policy for foreign investment would be more effective for attracting the foreign investment. Accordingly, the Korea's policy for attracting the foreign direct investment should be focused on the realistic policies such as direct subsidies or financial support (financing) rather than the tax reduction system.

• Journal of Digital Convergence
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• v.15 no.6
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• pp.1-8
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• 2017

This study examined the factors influencing foreign direct investment(FDI) in OECD countries where Korea is a target country. The differences in the cultural distances of host and home countries and the difference in the perceptions of corruption have been used to identify the factors affecting foreign direct investment. As a result of the study, it was found that there are differences in foreign direct investment according to cultural dimension and corruption perceptions index. Foreign direct investment may increase or decrease depending on the cultural tendency and the higher the perceptions of corruption, the more active the investment. The smaller the power distance between host country and home country in the factors affecting foreign direct investment, the larger the number of investments and the larger the size of individualism versus collectivism. Foreign direct investment increased when the investing country's corruption perceptions index was high. The results of this study confirm that cultural and corruption perceptions can affect trade transactions. Therefore, it is necessary to consider the cultural tendency and the cultural distance in the trade transaction by confirming that the degree of culture and corruption perceptions can affect the trade transaction. And that it can influence trade and economic growth by appropriately managing social variables such as public corruption.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.18 no.10
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• pp.588-596
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• 2017

Although many policy makers and scholars argue that foreign direct investment is crucial to the economic growth of developing countries, there is no universal agreement on the positive relationship between foreign direct investment inflows and economic growth. Using a cross-country analysis based on data from 88 countries for the years 1990-2015, this paper empirically explores the impact of FDI on economic growth. To this end, several versions of the neoclassical growth models, explicitly including FDI, are estimated. Subject to the appropriate caveats, the results provide further support for several key conclusions of former studies, including the inference that investment in physical capital, population growth, and human capital are important in accounting for economic growth across countries. The results show that FDI significantly contributes to economic growth in developing countries.

• International Area Studies Review
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• v.13 no.2
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• pp.526-548
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• 2009

Foreign Direct Investment(FDI) has played a vital role in the economic growth of Pakistan. The objective of this paper is to review the literature on the Pakistan's FDI law and explore possibilities for research. We focus on the Foreign Private Investment (Promotion and Protection) Act 1976, Furtherance and Protection of Economic Reforms Act 1992, and Foreign Currency Accounts (Protection) Ordinance 2001. Major concern seems to be frequent change in policies, lack of follow up for effective implementation of the good decisions above all the law.