• Korea Trade Review
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• v.44 no.3
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• pp.15-24
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• 2019

The study conducted an empirical analysis of the impact of FDI on economic growth in four Asian countries: China, India, Vietnam and Korea. With panel data for the 1990-2017 period, the research model was developed for foreign direct investment (FDI), export amount (EX), government expenditure (G), exchange rate (EXR), and labourable population (L). The panel analysis results show that the increase in FDI, exports, government expenditure, labourable population significantly increased economic growth. The comparison analysis for each country revealed that FDI, exports and government expenditure significantly affect economic growth in China, that exports and government expenditure significantly affect economic growth in Korea, that FDI significantly affected economic growth in Vietnam, and that the increase in the workforce contributed to economic development in India. This paper characterized the different factors of economic growth in the four Asian countries. These results suggest that setting economic priorities to suit the specific economic conditions of each country is a shortcut to more efficient economic growth.