• Asia-Pacific Journal of Business
• /
• v.13 no.4
• /
• pp.25-43
• /
• 2022

Purpose - This study is to investigate the direct and moderating effect of intangible variable like economic freedom to facilitating factors on FDI(foreign direct investment) inflows and the difference of facilitating factors by the stage of economic development. Design/methodology/approach - Fixed-effect panel regression analysis with 19-year macro economic data from 2000 to 2019 including economic freedom index from Fraser Institute in 13 developed and 15 developing countries was used. Research implications or Originality - In analysis of direct effect of 5 sectors in economic freedom, the influence of economic freedom was shown weaker than other macro economic factors on FDI inflows, which indicates that actual development of economic factors are more important. The effect of economic freedom on FDI inflows at the stage of economic development differed. In developed countries, human capital, GDP, export, free trade and regulation affected FDI inflows in decreasing order, as did human capital, GDP, consumption expenditure, export, investment expenditure, government expenditure, free trade and sound money in developing countries. In analysis of moderating effect of economic freedom, a domestic and international market size, a flexible labor market which can provide a cheaper good human resources and government expenditures for improving social infrastructure under free economic environment facilitated FDI inflows. However, the statistical significance of moderating effect on export was not shown, which indicates that economic freedom policy itself without actual improvement of exports could not attract FDI inflows.

• The Journal of Asian Finance, Economics and Business
• /
• v.5 no.2
• /
• pp.15-24
• /
• 2018

The study examines the magnitude of economic spillover and the impact of foreign direct investment (FDI) inflows on the efficiency of the bank industry in China. This study employs unit root tests, cointegration tests and cointegrating regression analysis, including fully modified ordinary least squares (FMOLS), canonical cointegrating regression (CCR) and dynamic OLS (DOLS) to test the proposed hypotheses. The sample is restricted to the period of time in which monthly data is available and comparable among variables for the period from January 2002 to October 2013 (142 observations). All of the time series data was collected and retrieved from the People's Bank of China, China Monthly Statistics from the National Bureau of Statistics of China, and International Financial Statistics database from International Monetary Fund. The results of the Johansen cointegration test suggest that there is a long-run equilibrium relationship between FDI inflows, foreign exchange rate and banks performance in China. The results of cointegrating regression analysis using FMOLS, CCR and DOLS suggest that M2 supply and FDI inflows are significant at the 0.01 level. The results confirm that FDI inflows in the banking sector are positively related to the increase of banks productivity and performance and short-term loans in China. However, the results suggest that Chinese Yuan currency exchange rate to U.S. dollar is not significant in the banking and financial industry of China.

• Korea Trade Review
• /
• v.44 no.3
• /
• pp.123-136
• /
• 2019

This study investigates the facilitating factors of FDI (foreign direct investment) inflows in 15 developing countries of three continents (Asia, Latin America, and Africa) using fixed-effect panel regression analysis with 30-year macro socio-economic data. The facilitating factors of FDI inflows in each continent differed. In Asia, labor compensation, GDP, consumer expenditure, human capital, and export facilitated FDI inflows in decreasing order, as did export, total factor productivity, GDP, and human capital in Latin America, and investment expenditure, human capital, government expenditure, and export in Africa. Most importantly, the character of cost saving efficiency-seeking investment was very strong in Asia. Also, third-party export-oriented investment and economic growth-oriented investment were shown in Latin America and Africa, respectively.

• Journal of Korea Trade
• /
• v.24 no.8
• /
• pp.63-80
• /
• 2020

Purpose - Recent empirical studies have shown that FDI is expected to be strongly associated with democratic governance, political stability, and sound macroeconomic conditions of the host country. We attempt to take it a step further to see if governments implement a major change in institutional characteristics, will the institutional reform toward better governance have a substantive effect in enhancing FDI inflows. This paper thus aims to analyze the importance of good governance as an important factor in the attractiveness of FDI inflows in ASEAN+3 (Korea, China, Japan) countries. Design/methodology - To determine the effects of good governance on FDI inflows across ASEAN+3 countries recorded between 1996-2018, the Worldwide Governance Indicators (WGI) are used to investigate the impact of good governance on FDI inflows. The model has been estimated by using fixed effects to show the robustness of the results. Findings - Our main findings can be summarized as follows: Political Stability, Rule of Law, and Voice and Accountability have a statistically significant impact on the inflow of FDI in the ASEAN+3 Countries, especially for Korean economy. Moreover, GDP growth continue to exert their positive influence. However, Regulatory Quality, Government Effectiveness and Control of Corruption, though equally important, are insignificant to attract FDI inflows. The key finding is that good governance has a significant impact on inward FDI in the ASEAN+3 countries. Originality/value - Existing studies focus on the impact of political factors on FDI across countries. This paper instead attempts to investigate which type of good governance is the most important in promoting FDI inflows across ASEAN+3 countries, which is essential for multinationals to consider when choosing a foreign site as a possible FDI destination.

• Korea Trade Review
• /
• v.43 no.2
• /
• pp.47-67
• /
• 2018

The purpose of this study is to determine factors of FDI inflows which positively influence economic development. While MNCs ultimately decide on which country to engage in FDI, it can be affected by the general investment environment of host countries. Thus, it may be closely linked to national macro socio-economic factors. In the fixed-effect panel regression analysis using 30 years of data of 13 developed countries and 15 developing countries, results indicate that labor redemption exerts the greatest influence on global FDI inflows; this implies that FDI decisions are based on locations featuring higher productivity by the reduction of labor costs. According to the level of economic development, the motive of FDI inflows differs. In developed countries, GDP, government expenditure and consumer expenditure exert the greatest influence on FDI inflows; which shows characteristics of market seeking and horizontal investment. However, in developing countries, labor redemption and human capital exert the greatest influence on FDI inflows; which shows characteristics of efficiency seeking and vertical investment.

• Journal of Wetlands Research
• /
• v.3 no.1
• /
• pp.49-59
• /
• 2001

The objective of this study is to provide the results of frequency analysis for Dong-eup reservoir, in which the environmental and ecological roles in addition to the water supply and flood control capacity of the reservoir are increased rapidly. The suggested results are the frequency analysis of annual maximum rainfall data based on eight different rainfall duration data at Masan and Milyang raingauge stations. We also provide the probabilistic inflows from subbasins and evaluate the stage increases of the reservoir. As results, the 24-hour and 100-year return period rainfall is 291.8 mm and consequently inflows are 361.79 cms for Junam, 192.57 for Sannam and 408.28 for Dongpan reservoirs. The 24-hour and 100-year return period reservoir stages are expected as 5.08 m, 5.51 m and 6.89 m depending on the initial reservoir stage. The suggested results of frequency analysis of rainfalls, inflows and reservoir stages in this study will be useful for the scientific and systematic management of the reservoir.

• Korean Journal of Agricultural Science
• /
• v.38 no.3
• /
• pp.513-524
• /
• 2011

To evaluate the applicability of inflow runoff model to reservoir operation in Korea, DAWAST model and TPHM model which are conceptual lumped daily runoff model and were developed in Korea, were selected and applied to simulate inflows to Daecheong multipurpose dam with watershed area of 4,134 $km^2$, and water storages in Geryong reservoir with watershed area of 15.1 $km^2$ and total water storage of 3.4 M $m^3$. Evaluating inflows on an yearly, monthly, ten-day, and daily basis, inflows by DAWAST model showed balanced scatters around equal value line. But inflow by TPHM model showed high in high flows. Annual mean water balance by DAWAST model was rainfall of 1,159.9 mm, evapotranspiration of 622.1 mm, and inflow of 644.6 mm, from which rainfall was 104.8 mm less than sum of evapotranspiration and inflow, and showed unbalanced result. Water balance by TPHM model showed satisfactory result. Reservoir water storages were shown to simulate on a considerable level from applying DAWAST and TPHM models to simulate inflows to Geryong reservoir. But it was concluded to be needed to improve DAWAST and TPHM model together from imbalance of water balance and low estimation in high flow.

• The Journal of Asian Finance, Economics and Business
• /
• v.5 no.4
• /
• pp.35-44
• /
• 2018

The study is aimed at investigating the main factors that affect the interest rate yields, in the long-term. In addition, the study surveys the theories and literature relating to the determinants of interest rate. The importance of which is essential not only for governments, but also for banks and corporate financial risk management decisions, including risk exposures in banks and capital markets. Interest rate influences corporate profit as well as growth. For this purpose, the study examines the impact of budget deficit, risk-free rate, capital inflows, money supply and business cycles on real interest rate in Jordan. These factors are based upon well-established theories and straightforward practical view as interest rate determinants. Using data for (1990-2015), the study employed Johansen's co-integrating test, which takes into consideration the long-term unsynchronized relationships. The data is tested for normality, symmetric correlations, covariance diagonal and unit root. The results show that the government budget deficit, short-term risk-free interest rate, capital inflows, money supply and business cycle are long-term determinants of the real interest rate in Jordan. The coefficients of government budget deficit, short-term risk-free rate, money supply and business cycle all are inversely affecting the real interest rate, while capital inflows has a positive impact on the real interest rate.

• The Journal of Asian Finance, Economics and Business
• /
• v.8 no.1
• /
• pp.23-36
• /
• 2021

The study explores the nexus between foreign direct investment (FDI), financial innovation, and exchange rate volatility in selected South Asian countries for 1980 to 2017. The study applies the unit root test, Autoregressive Distributed Lagged, nonlinear ARDL, and causality test following Toda-Yamamoto. Unit root tests ascertain that variables are integrated in a mixed order; few variables are stationary at a level and few after the first difference. Empirical model estimation with ARDL, Long-run cointegration revealed with the tests of FPSS, WPSS, and tBDM by rejecting the null hypothesis of "no cointegration." This finding suggests that, in the long-run financial innovation, FDI inflows, and exchange rate volatility move together. Moreover, study findings established adverse effects running from FDI inflows and financial innovation to exchange rate volatility in the long run. These findings suggest that continual FDI inflows and innovativeness in the financial system assist in lessening the volatility in the foreign exchange market. Furthermore, nonlinear ARDL confirms the presence of asymmetric cointegration in the model. The standard Wald test established asymmetric effects running from FDI inflows and financial innovation to exchange rate volatility, both in the long and short run. Directional causality unveils feedback hypothesis holds for explaining causality between FDI, financial innovation, and exchange rate volatility.

• Journal of Soil and Groundwater Environment
• /
• v.29 no.4
• /
• pp.21-31
• /
• 2024

Sumgol in Jeju Island plays a significant role in groundwater recharge due to its permeable hydrogeological characteristics. However, a quantitative assessment of the interrelationship between rainfall characteristics and rainwater inflows into Sumgols has not yet been conducted. Therefore, this study examined the characteristics of rainwater inflow into three Sumgols located in the eastern and western regions of Jeju Island and assessed hydrogeologic factors influencing these inflows. During two rainfall events, the studied locations in Sumgol exhibited different characteristics of rainwater inflows, despite experiencing similar rainfall events. Additionally, the delay time for rainwater to reach the Sumgol locations after the rainfall was influenced more by rainfall intensity than by cumulative amount of rainfall. In Sumgols located in non-volcanic ash soil with low hydraulic conductivity, such as those in agricultural areas, rainwater inflows were observed even with small rainfall and low rainfall intensity. This study suggests that rainfall intensity, soil characteristics, permeability of lava flows, and land use are key factors influencing rainwater inflow into Sumgols, revealing that soil characteristics and the permeability of lava flows have a greater impact on surface runoff than land use.