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THE DETERMINANTS OF KOREA’S FOREIGN DIRECT INVESTMENT FROM THE UNITED STATES, 1980–2001: AN EMPIRICAL INVESTIGATION OF FIRM‐LEVEL DATA
Journal article   Peer reviewed

THE DETERMINANTS OF KOREA’S FOREIGN DIRECT INVESTMENT FROM THE UNITED STATES, 1980–2001: AN EMPIRICAL INVESTIGATION OF FIRM‐LEVEL DATA

BANG NAM JEON and SUNG SUP RHEE
Contemporary economic policy, v 26(1), pp 118-131
Jan 2008

Abstract

This paper examines the link between Korea’s foreign direct investment (FDI) inflows from the United States and locational, financial, and macroeconomic variables using firm‐level data of FDI transactions, which were completed during the period from January 1980 to February 2001. Korea’s FDI inflows from the United States are found to have significant associations with real exchange rates, relative wealth, relative wage costs, expected exchange rate changes, and interest rate differentials. The extent and direction of the links, however, have varied according to different FDI regimes during the last 20 yr in Korea. Industry‐specific factors have also played a role in determining Korea’s FDI inflows. (JEL F21, F30)

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Economics
Public Administration
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