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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

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  • BANG NAM JEON
  • SUNG SUP RHEE

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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  • Bang Nam Jeon & Sung Sup Rhee, 2008. "The Determinants Of Korea’S Foreign Direct Investment From The United States, 1980–2001: An Empirical Investigation Of Firm‐Level Data," Contemporary Economic Policy, Western Economic Association International, vol. 26(1), pages 118-131, January.
    • Handle: RePEc:bla:coecpo:v:26:y:2008:i:1:p:118-131
    DOI: 10.1111/j.1465-7287.2007.00061.x
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    Cited by:

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    2. Uddin, Moshfique & Boateng, Agyenim, 2011. "Explaining the trends in the UK cross-border mergers & acquisitions: An analysis of macro-economic factors," International Business Review, Elsevier, vol. 20(5), pages 547-556, October.
    3. Odili Okwuchukwu, 2015. "Exchange Rate Volatility, Stock Market Performance and Foreign Direct Investment in Nigeria," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 5(2), pages 172-184, April.
    4. Anselm Komla Abotsi & Tongyai Iyavarakul, 2015. "Tolerable Level of Corruption for Foreign Direct Investment in Africa," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 9(3), September.
    5. Nuno Carlos Leitão & Horácio Faustino, 2008. "Portuguese Foreign Direct Investments Inflows: An Empirical Investigation," Working Papers Department of Economics 2008/54, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    6. Leitão, Nuno Carlos, 2012. "Foreign direct investment and globalization," MPRA Paper 37436, University Library of Munich, Germany.
    7. Tolentino, Paz Estrella, 2010. "Home country macroeconomic factors and outward FDI of China and India," Journal of International Management, Elsevier, vol. 16(2), pages 102-120, June.
    8. Brinda Sooreea-Bheemul & Uzma Shataz Rasool & Rajeev Sooreea, 2020. "Does Economic Freedom Matter to Foreign Direct Investment in Sub-Saharan Africa?," International Journal of Economics and Financial Issues, Econjournals, vol. 10(3), pages 195-207.
    9. John C. Anyanwu, 2012. "Why Does Foreign Direct Investment Go Where It Goes?: New Evidence From African Countries," Annals of Economics and Finance, Society for AEF, vol. 13(2), pages 425-462, November.

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    More about this item

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F30 - International Economics - - International Finance - - - General

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