Korea Trade Review (무역학회지)

Korea Trade Research Association (한국무역학회)
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A Study on the Relationship between FDI Outflows and Export from Korea to India

한국의 대인도 FDI와 수출의 상관관계 연구

  • Shin-Jou Kim (BRICs Major, Hankuk University of Foreign Studies)
  • 김신주 (한국외국어대학교 BRICs전공)
  • Received : 2022.11.29
  • Accepted : 2022.12.30
  • Published : 2022.12.30
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Abstract

Since the economic reform 1991, Indian has been implementing policies to promote trade and foreign direct investment (FDI). In particular, since the inauguration of the Modi government in 2014, India has created an economic environment in which more FDI can be launched and more jobs created in manufacturing sector. This study aims to analyze between FDI outflows and export from Korea to India. Using the quarter data from 2000 to 2021, this study examines panel regression. From the panel regression result, Korea's FDI outflows to India has a significantly positive impact on the Korea's export into India. Therefore, the relationship between FDI outflows and export from Korea to India is complementary. It is due that Korea's companies invest into India directly for the purpose of construction of production factors, and export capital goods and intermediate goods for producing in the factors. Therefore, for promoting FDI and export between Korea and India, Korean government should do continuous economic cooperation and discussion for the cooperation with Indian government.

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