• Korea Trade Review
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• v.45 no.6
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• pp.1-22
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• 2020

This paper analyzes the influence of entrepreneurial orientation, international market orientation, and investment performance of Korean SMEs in Vietnam on sequential investment. As a result of analyzing the research model using PLS SEM, it was found that Korean SMEs make sequential investments based on investment performance rather than entrepreneurial orientation or international market orientation. In addition, entrepreneurial orientation increased internationa market orientation and had a positive effect on investment performance, which was found to have a positive effect on sequential investment. Through this study, it was clarified that there is a difference between the determinants of initial investment and sequential investment, and it was confirmed that Korean companies show stable and strategic sequential investment tendency rather than proactive and bold investment in Vietnam. In addition, the mediating effect of international market orientation and investment performance in sequential investment was confirmed. In addition, it was confirmed that entrepreneurial orientation was a valid factor in the indirect effect of sequential investment. In the future, for high entrepreneurial orientation Korean companies entered the Vietnamese market, there will be a need for policy support to provide information on Global Value Chain in Vietnam and establish networks on the country.

• Journal of Distribution Science
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• v.20 no.4
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• pp.77-83
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• 2022

Purpose: This study aims to find the impact of international trade cooperation and distribution on foreign direct investment (FDI). The study also tests the impact of lag variables of trade cooperation and distribution on FDI in the future. Research design, data, and methodology: Autoregressive Distributed Lag model is applied to analyze the impact of chosen variables such as total trade (TRADE), trade openness (OPEN), the exchange rate (EXR), inflation (INF), and gross domestic growth (GDP) on FDI. Quarterly data is collected from Vietnam General Statistic Office, Vietnam General Department of Customs, International Monetary Fund, and The World Bank from 2006 to 2020. Stata 14 software is used to analyze the regression and test variables. Results: The findings indicate that TRADE, OPEN, INF, GDP, and their lags affect both positively and negatively on FDI in different periods. While OPEN still expresses an unclear impact on FDI. Moreover, this study proves that the FDI of a nation is influenced by international cooperation. Conclusions: This study indicates the importance of international trade cooperation and distribution in not only attracting foreign investment sources but also developing the economy. Findings are necessary bases for governments or authorities in signing international trade agreements in the future.

• International Commerce and Information Review
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• v.10 no.2
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• pp.411-432
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• 2008

This study presents the pattern and determinants of intra-industry trade in Korea's machinery and transport equipment industry focusing the influence of foreign direct investment on intra-industry trade. Using an OLS regression model the determinants of intra-industry trade are investigated. Results indicate that a statistically significant negative relationship is found between intra-industry trade and foreign direct investment, and show that intra-industry trade is positively affected by the degree of product differentiation and export structure similarity. Intra-industry trade is also positively associated with the economies of scale, the level of trade barrier, and transportation costs, although this is not statistically significant. The study found strong evidence that the propensity of foreign direct investment toward export specialized industry makes the negative relationship between intra-industry trade and foreign direct investment.

• Korea Trade Review
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• v.44 no.1
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• pp.45-56
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• 2019

The purpose of this study is to investigate the relationship between foreign investment and carbon emissions in the Korean electricity sector, the causal relationship between the foreign investment invested in the electric power sector in the 16 regional regions and the carbon emissions in the region, The purpose of this study is to analyze the effects of foreign investment on these sectors and the carbon footprint of these sectors using Panel Random Effect Analysis, Panel VAR and OLS models. A panel analysis of foreign investment and regional carbon emissions showed that there was a causal relationship. Based on this analysis, OLS analysis showed that 7 out of 16 metropolitan areas were foreign investment And carbon emissions were significant. In the remaining six regions except Gwangju, there was a causal relationship between foreign investment in the local power sector and the reduction of carbon emissions. After categorizing the electric power industry by device, process, purpose and number of employees, causality also appeared in relation to foreign investment in these sectors and their carbon emissions. Through this study, the authors suggest that foreign investment can be a way to solve not only the financial burden of carbon emission problem, but also the development of national economy and industry through the inflow of capital and advanced new technology.

• International Commerce and Information Review
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• v.10 no.4
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• pp.533-551
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• 2008

Export Credit Agency(ECA) plays a role of importance in international trade and investment flows. The first ECA, the Export Credits Guarantee Department(ECGD) of the United kingdom, was established in 1919. Its original purpose was to encourage and support exports that would not otherwise have taken. Similar motivations led to the establishment, most of those in operation today. Their traditional role is to support and encourage exports and outward investment by insuring international trade and investment transactions, and in some cases by providing trade finance directly. ECA come in all shapes and sizes, and there in no such thing as a typical ECA model. Most of them insure both political and commercial risks on exports and until the last decade. They operated as government entities or on the account of their government, and many of them have changed and are still changing. This study focuses and analyzes the changes of those four major countries' ECAs, which are the U.S.A.(EXIM), France(COFACE), Japan(JBIC), and Canada(EDC).

• The Journal of Asian Finance, Economics and Business
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• v.7 no.2
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• pp.157-168
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• 2020

Since the economic crisis sweeps across the world in 2008, the foreign direct investment of various countries has been greatly impacted. Therefore, this paper regards China as an example to analyze China's outward foreign direct investment patterns in terms of Asian financial markets with a panel data over the period 2003-2017. We mainly focus on the money market oriented outward foreign direct investment and foreign exchange market oriented outward foreign direct investment. Using the individual fixed effect model to conduct empirical analyses, the empirical findings indicate that China will reduce its foreign direct investment amount to a country with large money supply and China will increase its foreign direct investment amount to a country with large foreign exchange reserves. Furthermore, when a country has signed Free Trade Agreement with China, China will increase more foreign direct investment amount to these countries than that of a country who has not signed Free Trade Agreement with China. Moreover, the empirical findings indicate that no matter what the money market oriented outward foreign direct investment or foreign market oriented outward foreign direct investment, China will reduce its foreign direct investment amount to these Asian countries due to the global economic crisis.

• Journal of Korea Trade
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• v.24 no.3
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• pp.55-72
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• 2020

Purpose - In this paper, we provide recommendations for Korea's long-term direction and strategic measures to attract inward foreign direct investment (FDI) in response to Japan's export regulations. In doing so, we analyze the current situation and characteristics of trade between Korea and Japan, focusing on the parts and materials industry, which is particularly affected by Japan's trade regulations. Design/methodology - Based on the analysis of five successful inward FDI cases (e.g. Toray, IGK, Delkor, GlobalWafers, DuPont) and statistic trend review in the parts and materials industry, we consider various factors pertaining to successful inward FDI in Korea and propose valuable investment attraction strategies. Findings - For a successful investment attraction strategy, we studied some statistical trends in the internal and external environments of the parts and materials industry and successful investment attraction cases in Korea. We have found that in order to increase the probability of success in attracting investment, we need a mid-to long-term strategy considering multiple factors such as "Production-oriented, Demand-linked, Global Value Chain (VGC) linked, and Policy-linked investment attraction." Originality/value - We suggest several specific measures and important strategic implications for the Korean government and firm's managers to attract inward FDI successfully.

• Journal of Korea Trade
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• v.27 no.3
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• pp.161-178
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• 2023

Purpose - purpose of this paper is to analyze the effects of the investment facilitation levels of 11 RCEP countries (excluding Myanmar, Brunei, and Laos due to lack of data) on China's outward foreign direct investments(OFDI) using balanced panel data from 2010 to 2019. Design/methodology - First, four investment facilitation measurement indicators (regulatory environment, infrastructure, financial market, ease of doing business) were selected,investment facilitation scores of the 11 countries were obtained using the principal component analysis, an investment gravity model was established with nine explanatory variables (investment facilitation level, market size, population, geographic distance, degree of opening, tax level, natural resources, whether the country is an APEC member or not, and whether a valid bilateral investment treaty with China has been concluded) were used to establish an investment gravity model, and regression analyses were conducted with OLS and system GMM. Findings - The results of the regression analyses showed that investment facilitation levels had the greatest effect on China's OFDI, all four first-level indicators had positive effects on China's OFDI, and among them, the institutional environment had the greatest effect. In addition, it was shown that explanatory variables such as market size, population, geographical distance, degree of openness, natural resources, and whether or not a valid bilateral investment treaty has been concluded would have positive effects on China's OFDI, while tax levels and APEC membership would impede China's OFDI to some extent. Originality/value - Since the Regional Comprehensive Economic Partnership (RCEPT) came into effect not long ago, there are not so many studies on the effects of investment facilitation levels of RCEP member states on China's OFDI, and the investment facilitation measurement index constructed in this paper is relatively systematic and scientific because it includes all the contents of investment facilitation related to the life cycle of company's foreign direct investments.

• Journal of Distribution Science
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• v.21 no.2
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• pp.1-6
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• 2023

Purpose: Research on attracting foreign direct investment plays an important role in ASEAN countries. ASEAN has needed FDI capital for development and integration with many developing countries. Research design, data and methodology: This study is conducted to assess the impact of factors: inflation (INF), economic growth (GDP), population (POP), and trade (TRADE) on attracting foreign direct investment (FDI) of ASEAN countries. The study will find out how factors distribution contributes to FDI attraction. The study collects data from 10 ASEAN countries from 2010 to 2020. With data collected for ten countries from 2010 to 2020, data analysis with panel data will be used in this study. The Regression with Driscoll-Kraay standard errors correction model will be used in the study. Results: Panel data analysis shows that economic growth and population positively impact FDI attraction in ASEAN countries. However, two factors: INF and TRADE, do not affect FDI. Conclusions: Countries need to focus on economic development, create many good conditions for people and domestic enterprises and create opportunities for foreign investors to pay more attention. improving the quality of domestic human resources will help to better improve the working quality factor when the demand for high-quality human resources increases.

• International Commerce and Information Review
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• v.7 no.4
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• pp.435-453
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• 2005

This paper suggests several strategies for promoting Trade and Foreign Direct Investment cooperation to the Korean government and companies as follows ; For Korean government, its trade policy would be given much weight on the import from the Vietnam in the early developing stage. This import could be compensated and increased with the counter export of Korean products like the industrial goods. For Korean companies, they would make haste to invest and develop the abundant energy and natural resources in Vietnam. Their desirable strategies would be moving small scale projects into large ones, production partnerships with the foreign developed and experienced companies, and international joint ventures for using inward FDI incentives. The long range vision and perseverance are indispensable for promoting trade and foreign direct investments between and Korea and Vietnam and both parties' win-win results and development in the end.