• Journal of Distribution Science
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• v.18 no.9
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• pp.13-18
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• 2020

Purpose: Research and development of human capital in countries bring sustainable development to the nations. Especially for developing countries, the attraction of foreign direct investment not only brings economic growth to the country but also contributes to improving human capital. This study aims to assess the impact of foreign direct investment on human capital in ASEAN countries. Research design, data and methodology: With data collected from ASEAN countries from 1990 to 2019, panel data analysis is performed with revised model types (the Pooled OLS, Fixed effect model, Random effect model and regression with Driscoll-Kraay standard errors). Result: The results of the regression analysis show that FDI has a positive impact on human capital. At the same time, the study also found that public investment in education also positively affects human capital; the life expectancy factor does not affect human capital. Conclusions: With this research result, the authors also proposed a number of solutions to improve human capital by attracting FDI and improving the efficiency of investment for the education of ASEAN countries. Besides, public expenditure on education also plays an important role in raising human capital. Therefore, investment in education should be promoted further in the future.

• Korea Trade Review
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• v.42 no.1
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• pp.165-188
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• 2017

Foreign direct investment is the means for companies to enter the overseas market and strengthen their competitiveness. The holding of intellectual properties, representing advantages of firms, may affect foreign direct investment. By expanding previous studies, we define intellectual properties as including trademarks and design as well as patents. Using a random-effect panel data model, we examine the effects of both intellectual properties of Korea and host countries on Korea's foreign direct investment in 128 countries from 1981 to 2014. The results are as follow. First, the coefficients of Korea's intellectual properties, patent, trademark, and design are significantly positive. This implies that Korean firms may invest abroad to take their advantages of technologies, brand value, and the capability of product differentiation. Second, except for patents, intellectual properties of host countries have a positive impact on foreign direct investment. In other words, foreign direct investment to acquire the ability of branding or product design from host countries may occur. Third, the coefficients of Korea's intellectual properties are significantly greater than those of host countries' properties. Foreign direct investment to take advantages of the firms' capabilities overseas is greater than one to acquire knowledge of host countries. Finally, Korea's intellectual properties have a greater positive impact on foreign direct investment in high growth countries than in low growth countries. It is interpreted that Korean firms are more motivated to exploit their intellectual properties in developing countries with a high growth than developed countries. Overall, it is confirmed that Korea's foreign direct investment not only to utilize some advantages but also to seek the brand value or product differentiation ability from host countries can occur. Our findings provide the contribution that some innovative activities in firms and R&D investments policies which encourage the possession of intellectual properties can improve foreign direct investment.

• International Commerce and Information Review
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• v.11 no.2
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• pp.111-126
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• 2009

This study analysed determinants of Foreign Direct Investment to ASEAN+ 3 member nations using panel data for which cross-sectional data are combined with time series data. The data for the analysis included the amount of FDI, GDP, and indexes of economic independence. This study collected data from six nations(Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam) whose data were easily available, China and Japan from 2003 to 2007 and analysed them. The results are summarized as follows: Using the pooled OLS method, we found Model 2 had the highest explanatory power whose adjusted R-squared was 89.4%, which accounted for about 89% of foreign investment. Using the fixed effect model, Model 2 had the highest explanatory power whose adjusted R-squared was 96.8%, which accounted for about 97% of foreign investment. Using the probability effect model, Model 5 had the highest explanatory power, but in respect to its statistical significance, only GDP was 1% significant and the rest variables had no significance.

• East Asian Economic Review
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• v.23 no.2
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• pp.111-147
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• 2019

Singapore's inward and outward investments with industrialized countries in both manufacturing and service sectors were skill seeking while outward investments to developing countries were labor seeking. Applying the Knowledge-Capital model, it was found that services Foreign Direct Investment is sensitive to skill differences. A ten-percent decline in skill differences with industrialized countries resulted in a 4.25 percent rise in inbound manufacturing and 1.48 percent rise in inbound services investments. Meanwhile, a ten-percent increase in skill differences with developing countries resulted in a 30 percent rise in outbound manufacturing and 0.38 percent rise in services investments. Furthermore, when services are distinguished by skill-intensity, the impact of relative skill endowments on inbound Foreign Direct Investment in skill-intensive services is significantly different from the impact on other services. However, when services are disaggregated by "proximity" needs, we do not find any significant difference in the impact of relative skill endowments on Foreign Direct Investment.

• Asia-Pacific Journal of Business
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• v.10 no.4
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• pp.153-165
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• 2019

This paper examined economic liberalization and corruption in ASEAN member affect Korea's foreign direct investment. We use 160 (country-year) observations from ASEAN 10 member countries for a period of 16 years from 2001 to 2016, with the Economic Liberalization Index provided by the Fraser Institute and the corruption recognition index provided by the International Transparency Organization. As results, economic liberalization showed a non-linear(U shaped) effect on foreign direct investment and corruption has a negative effect on foreign direct investment.

• Journal of Digital Convergence
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• v.17 no.2
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• pp.73-80
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• 2019

This study analyzed the relevance between investment horizons of foreign investors and Book-Tax Difference. To do this, we measured investment horizons of foreign investors as the investment-turnover of foreign investors. We use the sample of 3,025 firm-year Korea listed companies belonging to non-financial corporate sector during 2011-2016. The results of empirical analyses show that investment horizons of foreign investors has a negative relevance with Book-Tax Difference. This result indicates that the firm have a long-term foreign investors has a good Accounting Earning's Quality than the firm have a short-term foreign investors. This study is expected to provide useful information by suggesting the need for more incentive for the long-term foreign investors. And Our Study has a contribution that this study extended prior research on foreign investors by utilizing investment horizons of foreign investors.

• 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.

• The Journal of Industrial Distribution & Business
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• v.14 no.11
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• pp.27-35
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• 2023

Purpose: China's economy has changed considerably in recent decades. By delivering a comprehensive knowledge of the elements that support successful foreign direct investment (FDI) in China and practical insights for multinational firms operating in this dynamic environment, this research offers a new perspective and sets itself apart from previous studies. Research design, data and methodology: It is necessary to give a thorough overview of the body of information on successful FDI in China, which justifies the adoption of a systematic literature review. The study may use a wide range of studies because of this methodology, which guarantees that inferences have a solid and supported basis in data. Results: The findings in the present study have clarified how China's government policies and regulatory framework affect foreign direct investment (FDI). Previous studies have indicated that regulatory changes can significantly impact FDI. For instance, more foreign direct investment (FDI) has been drawn to liberalized industries such as technology and finance. Conclusions: In conclusion, for foreign direct investment (FDI) to be successful in China, it is essential to consider these four factors: local partnerships and cultural adaptation, market research and entry strategy, regulatory environment and policy support, and risk management and contingency planning.

• The Journal of Economics, Marketing and Management
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• v.12 no.3
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• pp.1-12
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• 2024

Purpose: As a major economy attracting foreign investment, China is currently facing significant international economic pressure due to the appreciation of the RMB. Additionally, China is at a critical period of socio-economic development, where foreign direct investment (FDI) plays an indispensable role in stabilizing economic growth, adjusting industrial structure, and promoting economic transformation. Research design, data and methodology: This paper focuses on the relationship between RMB exchange rate expectations and FDI. It examines the magnitude of their relationship through empirical research using cointegration tests, Granger causality tests, and BVAR (Bayesian Vector Autoregression) analysis. Results: The comprehensive study of the empirical results in this paper concludes that there is a long-term cointegrated relationship between China's RMB exchange rate expectations and foreign direct investment, indicating that their relationship is stable in the long run. It is also found that RMB exchange rate expectations have a significantly positive impact in the short term, but this impact is not significant in the long term. Conclusions: The paper also considers the possibility of establishing a China-EU Free Trade Area in the future and offers policy recommendations regarding RMB exchange rate expectations and foreign direct investment.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.60
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• pp.79-106
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• 2013

The world is significant increasing investment volume into developing countries from foreign investors. Foreign financial capital is searching in interesting place among the emerging market. However foreign investors put still their experience in the economical and social crisis with political risks in the host countries. MIGA entered into the political risks insurance market which has one of the basic matter of sponsored the private investment guarantee programs. They put guarantee or covering risks of currency inconvertibility, expropriation, breach of contract and political violence. In the case contracts of guarantee concluded between investor and MIGA which are disputes in relation to such MIGA service contract, it should be settled by negotiation, conciliation and arbitration under the convention establishing the Multilateral Investment Guarantee Agency(MIGA). All disputes within the scope to states and investor of MIGA members shall be settled in accordance with the procedure set out in the convention. Recently, MIGA is opening the office in Seoul to strengthen joint efforts between MIGA and Korea. It will be a good chance to consider sustainable improvement and dispute solutions for emerging countries in foreign investment to the korean investors.