• Journal of Climate Change Research
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• v.4 no.2
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• pp.105-114
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• 2013

Recently, foreign direct investment of Korea has increased significantly. Foreign direct investment is motivated by various reasons and renewable energy investments in foreign countries can be performed by many causes. Korean companies can enjoy the export of products, related EPC contracts, acquisition of the knowledge of the project management technique, pre-occupying effect of the market and profit itself. Wind power projects have biggest share in the investment amounts among the renewable energy business. So, in this study, one wind farm project was selected and supposed to be invested in China, USA, Germany and UK at the same time and the effect of electricity price, corporate income tax, inflation rate and interest rate of debt were analyzed. The result showed that investing in Germany is most profitable because of the highest electricity price and electricity price and debt interest rate are the most sensitive factors for IRR. This approach would be helpful to make decisions in investing foreign wind power projects.

• Journal of Distribution Science
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• v.14 no.1
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• pp.39-49
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• 2016

Purpose - Considering industrialization development stages, an economic effect of ASEAN free trade agreement (FTA) on foreign direct investment (FDI) flows into the ASEAN countries was analyzed. Research design, data, and methodology - utilizing macro-level panel data from 2001 to 2012, panel regression analysis was conducted with a model constructed based on the knowledge-capital model. Results - As for overall ASEAN countries, ASEAN FTA was positively effective to attract vertical FDI to this region, while horizontal FDI was dominant before ASEAN FTA. Meanwhile, for the diversified economy relevant to Singapore, ASEAN FTA was not effective to attract FDI. For the ongoing industrialization economy relevant to Thailand, Malaysia, and the Philippines, ASEAN FTA was negatively effective to attract FDI; ASEAN FTA became a strong incentive to replace foreign investments with trade transactions for the horizontal firms, but an influence of market potentials after ASEAN FTA, which induces to third-country effects such as export platform FDI, has increased. For the incipient industrialization economy relevant to Indonesia, Vietnam, and Cambodia, ASEAN FTA was positively effective to attract vertical FDI. Conclusions - The effectiveness of FTA on FDI inflows varied considerably by the industrialization development stages of host countries.

• Journal of Arbitration Studies
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• v.18 no.2
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• pp.149-171
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• 2008

The purpose of this paper is to examine the Measures against Risks in International Investment Agreement: focusing on Umbrella Clause and MIGA. Umbrella Clauses have become a regular feature of international investment agreements and have been included to provide additional protection to investors by covering the contractual obligations in investment agreements between host countries and foreign investors. The meaning of umbrella clauses is one of the most controversial issues with which international arbitral tribunals have been recently confronted with while adjudicating investment disputes brought before them MIGA issues guarantees against non-commercial risks for investments, such as: currency transfer restrictions, expropriations, war and civil disturbances and breach of contract by host governments, and the case that the investor obtains an arbitration award or judical decision for damages and is unable to enforce it after a specified period. Furthermore, MIGA undertakes a wide range of mediation activities designed to remove obstacles to the flow of foreign direct investment in its developing member countries.

• Korea Trade Review
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• v.44 no.2
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• pp.21-35
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• 2019

This study analyzes factors that affect the corporate value of Korean companies operating in Latin American countries. Primary factors are associated with characteristics of the host country, the parent company, and subsidiaries. Empirical results show that asset specificity is the main factor influencing firm value. This region is geographically far from Korea and culturally different. Therefore, the source of competitive advantage such as asset specificity should be large enough to offset liability of foreignness for successful entry into the region. This paper also found that joint ventures are more advantageous than direct investments. Joint ventures in Latin American can minimize risk, complement technology and information, and reduce trade barriers.

• Asian Journal of Innovation and Policy
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• v.10 no.2
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• pp.195-211
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• 2021

This paper measures the economic impacts of the U.S. port investment strategies coping with the Panama Canal expansion. Using secondary import data, negative and positive estimates of the impacts were presented in this study. Reduced port activities into the West Coast Customs Districts negatively affect transportation and warehousing industries, among other effects. Still, they have simultaneous positive effects in other states from increased imports resulting from modal shifts and changes in the entry port located in the South and East coasts. This study applied the supply-driven National Interstate Economic Model that measures all interstate trade among the U.S. states to divert foreign imports from 15 Pacific Rim countries. For this purpose, the following assumption was adopted: larger ships using the canal will lead to a redirection of seaborne trade among U.S. (and other) ports and result in secondary effects, e.g., using different freight modes and regional growth spillovers. This study also accounted for the entry point change and significant port investments for foreign trade under alternative scenarios. The choice of ports for international trade depends on decisions about how to minimize multimodal delivery costs. The total direct reduction of transportation and warehousing activities associated with foreign imports in the West Coast ports was estimated at $3.3 billion, leading to total negative effects of $5.8 billion. Total positive impacts from the shift of transportation modes with the choice of an entry port and new warehousing activities for foreign imports in the selected 12 states varied. As expected, states that involved an entry port had the most prominent benefits, but Texas, New York, and New Jersey may be benefited through all the port enhancement projects in the U.S. Also, except for Transportation and Postal, and Warehousing industries, Construction is another dominant positive affected industry of the Canal expansion in the U.S.

• Journal of the Economic Geographical Society of Korea
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• v.3 no.1
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• pp.35-51
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• 2000

International trade flows have been determined by social, cultural and political environment around the world as well as economic elements. The environment of international trade has changed rapidly as the world has globalized. Significant changes have been generated in the international trade flows. This study investigates the influences of economic globalization on the international trade flows. The changes in international trade flows examined comprehensively by integrating trade with industrial locations, investment, and the various trade related environments. The focus laid on the integration of world economies, such as widening and intensifying international linkages in economic, political and social relation. Special concerns are laid on the impacts of Foreign Direct Investments (FDI) by Trans National Corporations (TNCs), which affect the supply-demand distributions of commodities by industrial relocations, and the expansion of intra-firm trade flows on the international trade flow patterns. The geographical characteristics of tile origins and destinations of FDI flows analyzed, since the spatial patterns of the intra-firm trade flows are determined by them. The FDI and intra-firm trade flow patterns have changed significantly over time.

• 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.

• International Commerce and Information Review
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• v.7 no.4
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• pp.387-407
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• 2005

This paper is to study globalization motives and strategies of Japanese and Korean industries by analyzing the causes and patterns of foreign direct investment (FDI) of the firms of the two countries during the 1980s and 1990s. First we develop a FDI function from the profit maximizing model of firms. Then we use regression analysis to determine internally driving-out factors and externally-inducing factors. Japanese FDI strategy has gone through three different stages; from natural resource-seeking investment in the 1950s and 1960s to market-expansion investment in the 1970s and 1980s and to a combination of cost-reducing (low-cost labor-seeking) investment and market-penetrating investment in the 1990s. On the other hand, Korean FDI behavior has gone through four different stages; from the learning stage with small investments in the 1970s, to natural resource-seeking investment in the early and mid 1980s, to the growth stage in the late 1980s and the early 1990s, to the maturity stage of the mid and late 1990s. The last two stages were characterized by a combination of cost-reducing investment and market-seeking investment. As a late comer, Korea began its FDI two decades later than Japan, but caught up the patterns of Japanese FDI by the mid 1990s and is in a competing position with Japan. Our findings show that both Japanese FDI and Korean FDI in Asia and other developing countries tendto be in labor-intensive sectors where their firms are losing their comparative advantages at home. The main motive for FDI into these regions is low-cost resource seeking. On the other hand, both Japanese FDI and Korean FDI in the U.S. and Europe tend to be knowledge-intensive sectors where Japanese and Korean firms attempt to internalize transaction and information costs by globalizing its production. The main motive for FDI into these regions is market-seeking. Firms in both countries have increased their investments in Mexico and Western and Eastern Europe in order to penetrate large economic blocs such as the EU and NAFTA area. Korean firms are more aggressive in expanding into new and untested markets than are their counterpart in Japan. Evidence of this can be seen in the scarcity of Japanese FDI and abundance of Korean FDI in Eastern Europe and China.

• The Southeast Asian review
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• v.21 no.2
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• pp.77-123
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• 2011

Recently, Southeast Asian people, its food, natural sceneries and so on have been increasingly exposed to Korean people through mass media and multi-cultural events. At the same time, Koreans can frequently encounter Southeast Asians in their everyday lives. Thus, specific images and discourses of Southeast Asia has been established in our society, which creates a new social trend called 'Southeast Asia phenomena'. In short, 'Southeast Asia phenomena' means a totality of Korean people's experience of Southeast Asian and their perception on the region. On the one hand, 'Southeast Asia phenomena' is a result of inflow of Southeast Asians and their culture into Korea. On the other hand, it is also a consequence of Korean people's understanding of Southeast Asia from their trip to Southeast Asia or from their interactions with Southeast Asian people. This article aims to analyze the origin and diffusion of 'Southeast Asian Phenomena' in Korea in the context of Southeast Asia focusing on 4 topics, that is, migrant workers, overseas investments, retirement migration, study-abroad categorized as human movement. This article is also about a country-by-country comparative analysis both at the macro level and the micro level. At the macro level, overseas investments and trade, human exchanges, positive perception to Koreans which considered to be the structural causes become a strong mechanism playing a important bridge role between Korea and Southeast Asia. So these create the high probability of the emergence of 'Southeast Asian Phenomena' At the micro level which is more direct causes of 'Southeast Asian Phenomena', the economic cause is the most important common cause for 4 Southeast Asian Phenomena. Additionally, Korean wave is also remarkable common cause creating 'Southeast Asian Phenomena' even it is not the origin in the context of Southeast Asia. The diffusion of 'Southeast Asian Phenomena' is different by the topics and the elements contributing to create the favorable situation for the diffusion are not only overseas investments and trade, human exchanges at the macro level but also policy elements at the micro level. The relative differences of the causes of 'Southeast Asian Phenomena' in the country-by-country analysis are found. Regarding overseas investments in Vietnam and Cambodia, the economic degree of freedom in Cambodia is higher than in Vietnam. Even Korean Wave has had the longer history in Vietnam, but the favorable perspectives on Korean Wave are stronger in Cambodia. For migrant workers from Vietnam and Indonesia, the economic causes in Vietnam are more significant than in Indonesia. The impact of Korean Wave is stronger in Vietnam than in Indonesia. In case of study-abroad, the social-cultural elements and policy elements are more diverse in Malaysia than in Korea. For the Korean retirees who immigrate to the Philippines and Malaysia, the economic causes in the Philippines is more significant in Malaysia.

• East Asian Economic Review
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• v.18 no.1
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• pp.29-54
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• 2014

The purpose of this research is to identify the relation between OFDI (Outward Foreign Direct Investment) and wage inequality. In order to analyze various effects of OFDI on wages depending on the types of workers, the research classified laborers into four categories: permanent/skilled worker, permanent/unskilled worker, temporary/skilled worker, and temporary/unskilled worker. With controlling wage-determining factors such as education, labor union, individual fixed-effect, and industry-level effect, this paper examines whether OFDI attributes to the wage inequality among each type of workers. Moreover, this study also analyzes possible effects on wages that could vary according to the different characteristics of investments by classifying OFDI into two groups: OECD and non-OECD. The results reveal that OFDI makes certain differences according to skill-intensity and contract type in terms of influences on wages. It also shows that the effect of OFDI on wages is more subject to contract type than to skill-intensity. The classification of OFDI into OECD and non-OECD proves that effects on wages can vary by characteristics of the subject of investment.