• 산경연구논집
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• 제14권11호
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• pp.27-35
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• 2023

Purpose: China's economy has changed considerably in recent decades. By delivering a comprehensive knowledge of the elements that support successful foreign direct investment (FDI) in China and practical insights for multinational firms operating in this dynamic environment, this research offers a new perspective and sets itself apart from previous studies. Research design, data and methodology: It is necessary to give a thorough overview of the body of information on successful FDI in China, which justifies the adoption of a systematic literature review. The study may use a wide range of studies because of this methodology, which guarantees that inferences have a solid and supported basis in data. Results: The findings in the present study have clarified how China's government policies and regulatory framework affect foreign direct investment (FDI). Previous studies have indicated that regulatory changes can significantly impact FDI. For instance, more foreign direct investment (FDI) has been drawn to liberalized industries such as technology and finance. Conclusions: In conclusion, for foreign direct investment (FDI) to be successful in China, it is essential to consider these four factors: local partnerships and cultural adaptation, market research and entry strategy, regulatory environment and policy support, and risk management and contingency planning.

• 유통과학연구
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• 제20권8호
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• pp.1-8
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• 2022

Purpose: Research on attracting foreign direct investment (FDI) plays an important role in helping provinces attract more FDI projects. However, with local competition, FDI enterprises also have to consider their investment. This study evaluates the provincial competitiveness to attract FDI in Thai Nguyen province, a province of Vietnam. In which provincial distribution of competitiveness is measured through nine indicators. Research design, data, and methodology: The study collects data (FDI and the provincial competitiveness index) from 2006 to 2020. The study uses Autoregressive Distributed Lag (ARDL) to text the impact of distribution of competitivenes on foreign direct investment. With time-series, the ARDL is suitable for data analysis. Results: The regression results indicate that the competition index of market entry and informal costs negatively impact attracting FDI into the province; The human resource training quality index has a positive effect on FDI. The results show that FDI enterprises pay much attention to business establishment procedures, hidden costs, and quality of human resources in the province. Conclusions: At the same time, in terms of practice, the results of this study, the authors also offer solutions to help improve the ability to attract FDI into Thai Nguyen province. The significant provincial competitiveness indicators should be taken into account for improvement first.

• 통상정보연구
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• 제11권3호
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• pp.391-408
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• 2009

This study first designates the factors affecting Foreign Direct Investment (FDI) in order to analyze the FDI in Korea, and calculates the Korean FDI index by using various designated variables and by applying Factor Analysis Technique. In addition, it attempts to understand the influence wielded by the foreign investment variables of foreign multinationals on FDI in Korea, by setting to analyze & verify Environmental Factors and the overall model based on FDI in Korea. Through an emprical analysis of USA, Japan, EU, China, as our hypothesis, we could verify that the positive effects(+) among the decisive factors of FDI in Korea include the market size, the mean earning rate of domestic manufacturing industries, and the marketing capacities of foreign corporations, while the negative effects(-) include the ratio of taxation on domestic manufacturing industries. Other FDI factors have various effects on each, so some factors show the same effects as the hypothesis while others show separate effects. In addition, the only nation for which the effects of FDI factors in Korea coincide with the hypothesis completely is the USA, while other nations (such as Japan, EU, China) have some effects that conform to the hypothesis, but other effects do not accord with it.

• 분석과 대안
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• 제5권2호
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• pp.3-38
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• 2021

Does Foreign Direct Investment (FDI) exacerbate income inequality in South Korea? If so, does rising income inequality come for the sake of economic growth? This study explores the impact of FDI on income inequality and growth in South Korea. To this end, we collect data on FDI and income inequality/economic growth at both national and provincial levels and empirically test their relationships in South Korea. The empirical results confirm our expectation that FDI magnifies income inequality. Furthermore, we fail to find a positive relationship between FDI and economic growth, implying that income inequality as a consequence of FDI does not come for the sake of economic growth in Korea. Findings suggest that more systematic research and nuanced policy design is necessary to circumvent the mechanisms at play that link the surge of FDI inflows and the exponential expansion of economic inequality.

• 유통과학연구
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• 제11권1호
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• pp.15-23
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• 2013

Purpose - During a reform period lasting 30 years, the Blue Economic Zone (BEZ) in the Shandong Peninsula has made progress in attracting foreign investment, and has acquired the foreign direct investment (FDI) essential for economic growth. It is therefore important to conduct a proactive and systematic study of FDI in the BEZ. Research design, data, methodology - This dissertation discusses the contribution of FDI on economic growth, from both a theoretical and empirical perspective. Taking seven core cities for study, statistics and econometrics are used, and panel data are used to validate FDI contribution to import and export in the BEZ. Results- FDI was found to exert both positive and negative influences on the imports and exports of the BEZ. In other words, the research findings are consistent with Trade Generated and Inverse Trade Generated theories put forward by Kojima and Mundell, among other researchers mentioned earlier in this paper. Further, FDI has greatly increased imports and exports for the BEZ. Conclusions - According to the results of this empirical study on local investment environment optimization, FDI plays an important role in foreign trade. This dissertation puts forward recommendations on using FDI to better promote economic growth in the BEZ.

• 무역학회지
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• 제44권3호
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• pp.123-136
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• 2019

This study investigates the facilitating factors of FDI (foreign direct investment) inflows in 15 developing countries of three continents (Asia, Latin America, and Africa) using fixed-effect panel regression analysis with 30-year macro socio-economic data. The facilitating factors of FDI inflows in each continent differed. In Asia, labor compensation, GDP, consumer expenditure, human capital, and export facilitated FDI inflows in decreasing order, as did export, total factor productivity, GDP, and human capital in Latin America, and investment expenditure, human capital, government expenditure, and export in Africa. Most importantly, the character of cost saving efficiency-seeking investment was very strong in Asia. Also, third-party export-oriented investment and economic growth-oriented investment were shown in Latin America and Africa, respectively.

• 유통과학연구
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• 제21권2호
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• pp.1-6
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• 2023

Purpose: Research on attracting foreign direct investment plays an important role in ASEAN countries. ASEAN has needed FDI capital for development and integration with many developing countries. Research design, data and methodology: This study is conducted to assess the impact of factors: inflation (INF), economic growth (GDP), population (POP), and trade (TRADE) on attracting foreign direct investment (FDI) of ASEAN countries. The study will find out how factors distribution contributes to FDI attraction. The study collects data from 10 ASEAN countries from 2010 to 2020. With data collected for ten countries from 2010 to 2020, data analysis with panel data will be used in this study. The Regression with Driscoll-Kraay standard errors correction model will be used in the study. Results: Panel data analysis shows that economic growth and population positively impact FDI attraction in ASEAN countries. However, two factors: INF and TRADE, do not affect FDI. Conclusions: Countries need to focus on economic development, create many good conditions for people and domestic enterprises and create opportunities for foreign investors to pay more attention. improving the quality of domestic human resources will help to better improve the working quality factor when the demand for high-quality human resources increases.

• East Asian Economic Review
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• 제25권2호
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• pp.151-174
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• 2021

This paper empirically examines whether and how inward foreign direct investment (FDI) affected industrial productivity in Korea during the 2000-2016 period, based on dynamic panel data of inflow FDI on an arrival basis from 427 manufacturing industries. The paper adds to the literature by analyzing whether both technology spillovers and industrial restructuring from inward FDI can differ according to industrial characteristics such as capital intensity, imported intermediate inputs, and tariffs. The empirical results show that the overall effects of inward FDI on total factor productivity (TFP) were statistically insignificant in general. However, the positive effects of inward FDI on productivity became statistically significant for industries with lower tariffs. Capital intensity were not involved in the relationship between inward FDI and productivity. Thus, the paper highlights that the results in previous studies with inward FDI on a notification basis were overestimated and inward FDI policies in Korea should focus on channels such as trade liberalization and the redistribution of production factors rather than capital accumulation.

• 무역학회지
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• 제45권4호
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• pp.195-205
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• 2020

This study investigates the effects of financial development on the foreign direct investment (FDI) flow in host countries. Using bilateral FDI data from 34 OECD source countries to 146 host countries, we performed panel data analysis based on a gravity FDI equation. We hypothesized that the financial development would increase the volume of FDI flows. The results suggest that the well-functioning finance market of source countries as well as a better accessable financial market of host countries contribute to the increase in FDI of OECD in their partner countries. We found also that the financial development effects of source countries are larger than those of host countries. This result shows that the financial development can play a crucial role to impact the FDI inflows as push factor in source country than as a pull factor in host countries.

• The Journal of Asian Finance, Economics and Business
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• 제8권4호
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• pp.33-42
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• 2021

This study aims to investigate the relationship between foreign direct investment (FDI) and economic growth at the provincial level by using time-series data in Binh Dinh from 1997 to 2019. We applied the quantitative approaches Vector Autoregression (VAR) and Autoregressive Distributed Lags (ARDL) in the model, which includes economic growth, real foreign direct investment capital, ratio of trained workers, and infrastructure. The results show that all these variables are stationary at the first difference. In ARDL analysis, we found that the economic growth positively affects FDI attraction. However, there is no evidence of the effect of FDI on economic growth in the condition of low capital implemented. Moreover, findings also show that the impact of FDI on economic growth is influenced by two factors: infrastructure and human capital. The lack of human capital, which is trained personnel and infrastructure, is the main barrier hindering and inhibiting FDI's contribution to local economic growth. In order to improve the efficiency of FDI on economic growth in the future, it is suggested that the Binh Dinh government should have proper policies in terms of the infrastructure, the human capital investment. They would allow Binh Dinh to enhance the capital absorptive capacity and capital efficiency.