Asia-Pacific Journal of Business (아태비즈니스연구)

KNU The Institute of Management & Economy Research (강원대학교 경영경제연구소)
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Determinants of Foreign Direct Investment: A New Perspective on Economic Liberalization and Corruption

해외직접투자 결정요인에 관한 연구: 경제자유화와 부패에 대한 새로운 시각

  • Nam, Hyun-Jung (Department of Management, Dongseo University) ;
  • Kim, Dae-Jung (Graduate School of International Studies, Dong-A University) ;
  • Park, Sun-Hwa (Institute of ASEAN Studies, Dong-A University)
  • 남현정 (동서대학교 경영학과) ;
  • 김대중 (동아대학교 국제대학원) ;
  • 박선화 (동아대학교 아세안연구소)
  • Received : 2019.11.30
  • Accepted : 2019.12.24
  • Published : 2019.12.30
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Abstract

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.

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