• Journal of Korea Technology Innovation Society
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• v.13 no.3
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• pp.446-458
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• 2010

All countries of the world have been spurring foreign direct investment consistently for securing of economic growth and growth engines, and Korea is no exception. Korea has been stimulating investment of high quality through various political support and the government has been publicizing it as an achievement. Based on the most of previous studies analyzed the results of foreign direct investment only on the view of domestic economy, this study supposes that foreign direct investment influences positively on management and innovation performance on companies, and evaluated effects of foreign direct investment by using Propensity score matching method. Analysis shows that foreign direct investment has positive influence on management and innovation performance before matching them. However, after matching them, the most statistical significance disappears. Consequently, foreign direct investment has limited effect on company's performance comparison on initial assumption. 'This study indicates that incentive policy of foreign direct investment would need to be amended, because effect of incentive policy was limited for firm's performance.

• Journal of Families and Better Life
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• v.29 no.2
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• pp.51-62
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• 2011

Financial consumers can invest their financial assets directly or indirectly. This investment type have effect on their financial well-being and may be influenced by their financial characteristics and investment attitude. The purposes of the study were to classify the consumers by direct and indirect investment behavior of their financial assets and to investigate their socio-economic characteristics and investment attitudes to give implications for financial counseling and education. The data came from the 2009 Fund Investors Survey which was conducted by Korea Investors Protection Foundation. Total 2,530 consumers were analyzed using frequency, CROSSTAB, ANOVA and Duncan's multiple range test. In general, consumer tended to be rational in choosing the investment type. Noninvestors consisted of 38.5% of the sample. The economic level was the lowest for the noninvestors. The consumers who invest both indirectly and directly consisted of 21.0% and their economic level was the highest. Their investment tendency was between direct and indirect investors'. The proportion of direct investors ws 12.1% and that of indirect investors was 28.4%. Although the economic levels of indirect investors and direct investors were not statistically different, there were differences in their demographics and investment attitudes. The proportions of those aged 30-39, female and nonmarried were greater for indirect investors. They had the tendency to invest safely and diversely for a long term with reserve money. On the other hand, direct investors tended to be male, married and aged 40-49. They tended to invest intensively for a shorter term and seek returns even with borrowing money.

• Korea Trade Review
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• v.46 no.2
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• pp.337-354
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• 2021

Several previous studies have not been able to derive consistent research results on the impact of the level of corruption in local countries on foreign direct investment. Therefore, in order to suggest that this study should consider the relative level of corruption rather than the level of absolute corruption, 1) first, examine the moderating effect of the absolute level of corruption on the determinants of foreign direct investment, and 2) examine the moderating effect of the relative corruption on the determinants of foreign direct investment. This study collected 9-year data from 2012 to 2020 based on the Corruption Perceptions Index (CPI) published by Transparency International. A total of 549 observations (country-year) from 82 countries were sampled and a generalized estimation equation (GEE) analysis was performed. As a result of empirical analysis, it was found that the moderating effect of absolute corruption did not appear, whereas the moderating effect of relative corruption reversed the negative (-) relationship between cultural distance and foreign direct investment into a positive (+) relationship. Based on these empirical results, this study suggest that Korean companies need to consider the relative level of corruption with Korea instead of the absolute level of corruption of the investee when conducting foreign direct investment.

• The Journal of Industrial Distribution & Business
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• v.12 no.9
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• pp.31-42
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• 2021

Purpose: After the reform and opening up, China's overall economic development has entered a new era. From mutual investment and trade transactions between domestic provinces and regions to investment and trade with foreign companies, the continuous supplement of investment funds makes the follow-up development of all aspects of economic development smoother and has played a strong impetus. effect. Foreign direct investment has many influences on the economic development of a country or region. Research design, data and methodology: This article uses the sample data of Shandong Province from 2011 to 2019 to analyze the foreign direct investment in Shandong Province by industry, region, method and other aspects, and study the relationship and influence between foreign direct investment and economic growth. Results: The results show that there is a relatively close relationship between foreign direct investment and economic growth, and it has played a role in promoting economic development in many aspects such as industrial structure, foreign trade, and employment. Conclusions: At the same time, corresponding suggestions are put forward based on the analysis and conclusions drawn.

• 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.

• Journal of the Economic Geographical Society of Korea
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• v.6 no.2
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• pp.355-375
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• 2003

Since the mid 1980s, the emergence of the Newly Industrialized Countries has been the most remarkable mutation in the foreign direct investment. This emergence is creating the new international spacial flows constituted by the developed country, the newly industrialized country and the developing country. According to the active foreign direct investment of the Asia Newly Industrialized Countries (ANICs) into East Asia from the middle of the 1980s, the intra-East Asia direct investment flow has a observable structure hierarchic composed of Japan, ANICs, ASEAN and China. In the inflow of intra-East Asia direct investment, Japan and ANICs flows from the extra-developed country and Japan, AESAN from ANICs, Japan, and China from the ANICs. In the outflow, Japan flows relatively into the ANICs and ASEAN, ANICs into ASEAN and China, ASEAN and China into the ANICs. In conclusion, the emergence of ANICs and theirs role intermediate in the East Asian economy causes the intra-East Asia direct investment flows to make a hierarchical structure.

• Korea Trade Review
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• v.46 no.1
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• pp.1-21
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• 2021

The main purpose of this research is to analyze the changes in investment motivation by year through time series and cross-sectional analysis of the factors and investment decisions of Korean manufacturing companies. According to the investment pattern for Asean from the 1980s to the 19th, the first expansion period was 82 to 86, the average increase in overseas investment for securing foreign raw materials due to the second oil shock, and the second expansion period was a gradual increase in exports to the U.S. in 1987 to 1996. During the first stagnation period, direct investment in Asean stagnated in the aftermath of the 1998-05 Asian crisis, and in the third expansion period, part of the production facilities invested in China were relocated to Asean, increasing Asean's investment to become Korea's largest manufacturing investment in 17. Korea's proportion of investment in Asean surpassed that of mass investment since 10 years ago, and the proportion of investment in manufacturing sector has been transferred from China to Asean, and after 17 years, it has served as an overseas production base connecting China. As such, The main purpose of the research will be to extract the determinant factors and key factors for overseas direct investment and investment patterns in conjunction with global manufacturing companies' production base relocation and investment trends through empirical analysis. This research paper gave basic reference to the motivation and determinant of investment 16 years ago, and analyzed the changes in investment motivation by year and content through empirical analysis, contributing some reasonable purpose to the decision of companies and policy makers interested in overseas direct investment.

• The Korean Journal of Financial Management
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• v.1 no.1
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• pp.119-131
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• 1985

Although Korea is short of capital technology, and natural resources, she has achieved an outstanding progress by the export-drive policies by Korean government and the creative endeavor of Korean firms. As a result of that, Korean economy and enterprises are in the same file of newly industrialized countries and Korea is ready for an economic take-off as a developed country. But in the early 1980s, each country strengthens protective trade theory and resources nationalism, and this has a great influence on the field of international trade environment. In spite of that, to continue the same high development as that of the past. Korea must try to secure and find export markets, solve trade barriers, make sure of the long-term security of resources, develop technology, and strengthen economic cooperations. To satisfy these desires by 2000s, we must try to make Korean enterprises have the global competitive power and them grow strongly among world wide firm through capital and technology accumulated during the passed years, and to do so, there must be a foreign production and marketing management, too, this can be achieved only through foreign overseas direct investment. This investment has various forms, to say, verifical integrated, horizontal integrated. conglomerate integrated forms, and the amount of investment in each country from 18 century to today reaches 500 billion dollars. This investment is done by strategic, behavioral economic, and financial motives. So I am going to approach the fields of like these; in spite of the differences among political, economical, caltural, and social systems, and many risk compared with domestic enterprises, why do Korean firms witsh to transfer the productive facilities to overseas countries and run them there? What is the comparative advantage of foreign direct investment compared with domestic investment ?. why is the factor of comparative advantage transferred through foreign direct investment?, what is the motive of foreign overseas direct investment?, and last the ownership-specific factors and the theory of internalization, and the location specific factors were analysed chiefly. But in consideration of the given condition in Korea, Korean overseas direct investment must be propelled rationally on the basis of the above mentioned theory.

• Asian Journal of Business Environment
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• v.6 no.1
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• pp.19-24
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• 2016

Purpose - This paper aims to find and analyze factors that determine the flows of bilateral foreign direct investment in intra-ASEAN. It specifically focuses on the dimension of macro-economic, natural resources, human resources, and the quality of governance. Research design, data, and methodology - Data were collected from 64 bilateral relations between ASEAN nations from 2002 to 2013. Panel gravity model was utilized to find factors that determine the flows of bilateral foreign direct investment. Results - Significant factors were identified that determine the flows of bilateral foreign direct investment: GDP home country, GDP host country, real interest rate, distance, and total natural resources rent. Unexpectedly, natural resources have a negative effect. Conclusions - In a situation of increasing the flow of FDI among the countries of ASEAN, the government should control the interest rates and maintain good relations with nearby countries. The negative effect of total natural resource rents implies that ASEAN countries should not depend on their natural resources to attract foreign investments.

• 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.