Korea Trade Review (무역학회지)

Korea Trade Research Association (한국무역학회)
권호 표지
DOI QR코드

DOI QR Code

A Study on the Outward Foreign Direct Investment and Psychic Distance of Spanish Companies

스페인 기업의 해외투자 진출과 심리적 거리에 관한 연구

  • Received : 2023.03.09
  • Accepted : 2023.04.21
  • Published : 2023.04.30
Download PDF
⟨ Previous Next ⟩

Abstract

The purpose of this study is to prove the effect of psychic distance between home country and host country on overseas foreign direct investment(OFDI) of Spanish companies through panel analysis. The panel data was based on cultural, institutional, economic, and geographical distance data over the past decade between Spain and Spain's OFDI countries. According to the Random Effect Model(REM) analysis, cultural distance(CULD) had a negative effect on OFDI, while institutional distance(INSD) had a positive effect. Among economic distances, income size distance(GDP) had a positive effect on OFDI, but export size distance(EXPO) had a negative effect. Geographic distance(PKM) had a negative impact. Meanwhile, according to the results of quantile regression analysis to prove the psychic distance effect by OFDI size, the effects of CULD and INSD in the quartile (75%) to which Korea belongs were the same as the REM analysis results. In addition, GDP and EXPO had a positive effect, and PKM had a negative effect but EXPO had a positive effect. Therefore, FDI host countries need to establish differentiated strategies through quantile analysis while making continuous efforts to improve the system.

본 연구의 목적은 본사국과 현지국간의 심리적 거리(Psychic distance)가 스페인기업의 해외투자진출(OFDI)에 미치는 영향을 패널분석으로 증명하는 데 있다. 패널데이터는 스페인과 스페인의 OFDI국가 간의 최근 10년간 문화적, 제도적, 경제적, 지리적 거리 데이터를 기초로 하였다. 임의효과모델분석에 의하면 문화적 거리(CULD)는 스페인기업의 OFDI에 부정적인 영향을 주는 반면, 제도적 거리(INSD)는 긍정적인 영향을 주었다. 경제적 거리 중 소득규모거리(GDP)는 긍정적인 영향을 미치나, 수출규모거리(EXPO)는 부정적인 영향을 미쳤다. 또한 지리적 거리(PKM)는 부정적인 영향을 미쳤다. 한편 OFDI규모별 분위분석 결과에 의하면, 한국이 속한 4분위(75%)에서는 CULD와 INSD의 영향은 REM분석 결과와 같았다. 또한 GDP는 긍정적인 영향을, PKM는 부정적인 영향을 미친 반면, EXPO는 긍정적인 영향을 미쳤다. 따라서 FDI유치 국가는 지속적인 제도개선 노력과 함께 분위분석을 통한 차별화된 전략수립이 필요하다.

Keywords

References

  1. 김성윤.김용태.이상준(2015), "분위회귀모형을 이용한 고객만족도 요인의 영향력 비교," 「Journal of Digital Convergence」, 제13권 6호, pp.125-132. https://doi.org/10.14400/JDC.2015.13.6.125
  2. 민인식(2018), "Revisiting Panel Data Analysis: Stata와 R 코딩," 「The Korean Journal of Stata」, 제5권 제1호, pp.61-73.
  3. 양오석.양윤호(2020), 「R-플렉스: 통계학의 기초와 응용」, 경기도 파주시: 지필미디어.
  4. Invest Korea(2007), 「외국인직접투자 유치백서 2007: 외환위기 이후 10년간의 외국인직접투자」, Retrieved August 16, 2021, from http://openknowledge.kotra.or.kr.
  5. Kotra(2021), 「2021 국별진출전략보고서 스페인」(Kotra자료 21-019), Retrieved October 2, 2021, from http://openknowledge.kotra.or.kr.
  6. Naver(2021), 「해외정보」, Retrieved August 16, 2021, from www.naver.com.
  7. Ambos, B., and Deobald, U.(2019), "Understanding the Formation of Psychic Distance Perception," International Business Review, Vol.28, pp.660-671. https://doi.org/10.1016/j.ibusrev.2019.01.003
  8. Bevan, A. and Estrin, S.(2004), "The Determinants of FDI into European Transition Economies," Journal of Comparative Economics, Vol.32, pp. 775-787. https://doi.org/10.1016/j.jce.2004.08.006
  9. Boghean, C. and State, M.(2015), "The Relation between Foreign Direct Investment and Labour Productivity in European Union Countries," Procedia and Economics and Finance, Vol.32, pp.278-285. https://doi.org/10.1016/S2212-5671(15)01392-1
  10. Brewer, P. A.(2007), "Operationalizing Psychic Distance: A Revised Approach," Journal of International Marketing, Vol.15 No.1, pp.44-46. https://doi.org/10.1509/jimk.15.1.044
  11. Brock, H., Johnson, J and Zhou, J.(2011), "Does Distance Matter for Internationally-oriented Small Firms," International Marketing Management, Vol.40 No.3, pp.384-394. https://doi.org/10.1016/j.indmarman.2010.08.007
  12. Campos, N. F. and Kinoshita, Y.(2003), "Why does FDI Go Where it Goes: New Evidence from the Transition Economies," International Monetary Fund, WP/03/228.
  13. Chan, C., Isobe, T. and Makino, S.(2008), "Which Country Matters? Institutional Development and Foreign Affiliate Performance," Strategic Management Journal, Vol.29 No.11, pp.1179-1205. https://doi.org/10.1002/smj.705
  14. Child, J., Ng, S. and Wong, C.(2002), "Psychic Distance and Internationalization: Evidence from Hong Kong Firms," International Studies of Management and Organization. Vol.32 No.1, pp.36-56. https://doi.org/10.1080/00208825.2002.11043656
  15. Coeurderoy, R. and Murray, G.(2008), "Regulatory Environments and the Location Decision," Journal of International Business Studies, Vol.39, pp.670-687. https://doi.org/10.1057/palgrave.jibs.8400369
  16. Davis, P. S., Desai, A. and Francis, J.(2000), "Mode of International Entry: An Isomorphism Perspective," Journal of International Business Studies, Vol.31 No.2, pp.239-258. https://doi.org/10.1057/palgrave.jibs.8490904
  17. Deardorff, A.(1995), "Determinants of Bilateral Trade: Does Gravity Work in Neoclassic World," National Bureau of Economic Research(Working Paper 5377), University of Michigan.
  18. Dow, D. and Karunaratna, A.(2006), "Developing a Multidimensional Instrument to Measure Psychic Distance Stimuli," Journal of International Business Studies, Vol.37 No.5, pp.578-602. https://doi.org/10.1057/palgrave.jibs.8400221
  19. Drogendijk, R. and Martin, O.(2015), "Relevant Dimensions and Contextual Weights of Distance in International Business Decisions," International Business Review, Vol.24, pp.133-147.
  20. Dunning, J. H.(2000), "The Eclectic Paradigm as an Envelope for Economic and Business Theories of MNE Activities," International Business Review, Vol.9 No.2, pp.163-190. https://doi.org/10.1016/S0969-5931(99)00035-9
  21. Eriksson, K., Johanson, J. and Majkgard, A.(1997), "Experiential Knowledge and Cost in the Internationalization Process," Journal of International Business Studies, Vol.28 No.2, pp.337-360. https://doi.org/10.1057/palgrave.jibs.8490104
  22. Ghemawat, P.(2001), "Distance Still Matters: The Hard Reality of Global Expansion," Harvard Business Review, Vol.79 No.8, pp.137-147.
  23. Ghemawat, P.(2007), Difference across Counties: The CAGE Distance Framework, Boston, MA:Harvard Business School Press.
  24. Hakanson L. and Ambos, B.(2010), "The Antecedents of Psychic Distance", Journal of International Management, Vol.16, pp.195-210. https://doi.org/10.1016/j.intman.2010.06.001
  25. Hernandez, V. and Nieto, M. J.(2015), "The Effect of the Magnitude and Direction of Institutional Distance on the Choice of International Entry Mode," Journal of World Business, Vol.50, pp.122-132. https://doi.org/10.1016/j.jwb.2014.02.002
  26. Hofstede, G. H.(1980), Culture's Consequences: International Differences in Work-Related Values, CA: Saga Publications.
  27. Hofstede, G. H.(2001), Culture's Consequences: Comparing Values, Behaviors, Institutions, and Organizations across Nations(2nd ed.), CA: Saga, Thousand Oaks.
  28. Johanson, J. and Vahlne, J. E.(1977), "The International Process of the Firm - A Model of Knowledge Development and Increasing Foreign Market Commitments," Palgrave Macmillan Journals, pp.23-32.
  29. Kim, Y. and Gray, S.(2008), "The Impact of Entry Mode Choice on Foreign Affiliate Performance," Management International Review, Vol.48 No.2, pp.165-188. https://doi.org/10.1007/s11575-008-0010-3
  30. Koenker, R. and Hallock, K.(2001), "Quantile Regression," Journal of Economic Perspectives, Vol.15 No.4, pp.143-156. https://doi.org/10.1257/jep.15.4.143
  31. Kogut, B. and Singh, J.(1988), "The Effect of National Culture on the Choice of Entry Mode," Journal of International Business Studies, No.3, pp.383-397.
  32. Konara, P. and Mohr, A.(2019), "Why We should Stop Using the Kogut and Singh Index", Management International Review, Vol.59, pp.335-354. https://doi.org/10.1007/s11575-019-00378-7
  33. Krugman, P.(1979), "Increasing Returns, Monopolistic Competition, and International Trade," Journal of International Economics, Vol.9 No.4, pp.469-479. https://doi.org/10.1016/0022-1996(79)90017-5
  34. Martin, O. and Drogendijk, R.(2014), "Country Distance: Development and Validation of a New Objective Measure," Journal of Small Business Management, Vol.52 No.1, pp.102-125. https://doi.org/10.1111/jsbm.12035
  35. Mishra, B. R. and Jena, P. K.(2018), "Bilateral FDI flows in Four Major Asian Economics: a Gravity Model Analysis," Journal of Economic Studies, Vol46 No.1, pp.71-89. https://doi.org/10.1108/JES-07-2017-0169
  36. Ninerola, A. and Victoria, M.(2016), "The Spanish Companies in China: Entry Forms and Barriers," Omniascience, Vol.12 No.1, pp.223-245.
  37. Paniagua, J. and Figueiredo, E.(2015), "Quantile Regression for the FDI Gravity Equation," Journal of Business Research, Vol.68, pp.1512-1518. https://doi.org/10.1016/j.jbusres.2015.01.043
  38. Philips, P., Antonio, N. Almeida, A. and Nunes, L.(2019), "The Influence of Geographic and Psychic Distance on Online Hotel Rating," Journal of Travel Research, Vol.59 No.4, pp.722-741.
  39. Quer, D. and Rienda, L.(2018), "Host Country Experience, Institutional Distance and Location Choice of Chinese MNEs," Cross Cultural and Strategic Management, Vol.26 No.1, pp.24-45.
  40. Ramos, A., Lyu, J., Gracian, J. and Hidalgo, A.(2020), How to Invest in Korea: The Experience of Spanish Companies, The Spanish Center of Korean Research, Madrid: CEIC.
  41. Ruiz, F. and Mas, J.(2003), "Spanish Company Foreign Market Entry," Working paper, Alicante University. WP-EC2003-10.
  42. Solana, G.(2017), La Inversion de las Empresas Espanolas en el Exterior, Madrid: McGraw-Hill/ Interamericana de Espana.
  43. Sousa, C. and Bradley, F.(2008), "Cultural Distance ad Psychic Distance: Refinements in Conceptualization and Measurement," Journal of Marketing Management, Vol.24 No.5, pp.467-488.
  44. Tatoglu, E. and Glaister, K.(1998), "Performance of International Joint Venture in Turkey," International Business Review, Vol.7 No.6, pp.635-656. https://doi.org/10.1016/S0969-5931(98)00031-6
  45. Tsang, E. and Yip, P.(2007), "Economic Distance and the Survival of Foreign Direct Investment," Academy of Management Journal, Vol.50 No.5, pp.1156-1168.
  46. World Bank(2021), Databank: GDP, Exports, Imports, Population, Retrieved Mar 11, 2021, from https://data.worldbank.org/indicator.
  47. World Economic Forum(WEF), Global Competitiveness Reports 2009-2018.
  48. Yang, Oh-Suk and M. Niedzielska (2017), "Rapid FDI Expansion of Firms from Emerging Market", Argumenta Oeconomica, 2(39), 373-402. https://doi.org/10.15611/aoe.2017.2.15
  49. Zhu, L. and Yang, J.(2008), "The Role of Psychic Distance in Contagion: A Gravity Model for Contagious Financial Crises," Journal of Behavioral Finance, Vol.9 No.4, pp.209-223. https://doi.org/10.1080/15427560802539466