콘텐츠 바로가기
로그인
컨텐츠

Category Open

Resources

tutorial

Collection of research papers and materials on development issues

home

Resources
Economy Trade
Economy Direct Investment

Print

무역 및 투자 개방이 한국의 FDI에 미치는 영향(Effects of trade and investment liberalization on Korea’s FDI)

Related Document
Frame of Image
  • 무역 및 투자 개방이 한국의 FDI에 미치는 영향(Effects of trade and investment liberalization on Korea’s FDI)
  • 김종덕; 이승래; 강준구; 김혁황
  • 대외경제정책연구원


link
Title 무역 및 투자 개방이 한국의 FDI에 미치는 영향(Effects of trade and investment liberalization on Korea’s FDI)
Similar Titles
Material Type Reports
Author(Korean)

김종덕; 이승래; 강준구; 김혁황

Publisher

[서울]:대외경제정책연구원

Date 2013-12
Series Title; No 연구보고서 / 13-08
ISBN 978-89-322-1455-9
Pages 243
Subject Country South Korea(Asia and Pacific)
File Type Link
Subject Economy < Trade
Economy < Direct Investment
Holding 대외경제정책연구원

Abstract

After Korea-Chile FTA became effective since 2004, Korea has made multiple free trade agreements with 47 countries including United States and European Union, and is currently negotiating upcoming free trade agreements with other countries, such as Indonesia, China, Vietnam, Australia, and New Zealand. Along with the global spread of trade liberalization, it is necessary to evaluate the post-effects of FTA that came into effect and the strategies for the upcoming FTAs. However, prior reports and papers analyzing the effects of FTA were mainly focused on evaluating its economic effects on goods, while most of FTAs are influential not only on product sector but also on investment and service sectors. In particular, since foreign direct investment (FDI) is directly and indirectly related to goods trade, FTA is also associated with foreign direct investment sectors. This report analyzes the effects of FTA on outward and inward foreign direct investment (IFDI and OFDI) of Korea. Our report provides detailed analysis on the contents of FDI openness in the trade agreement and construct FDI openness indices by dividing investment sectors from the previous 8 free trade agreements that became effective into 5 sectors and 25 sub-sectors and quantifying FDI openness based on those sub-sectors. By adding our constructed FDI openness indices to the regression, we find that FTA significantly increases both IFDI and OFDI in the short run. Examining the effects of investment liberalization on IFDI and OFDI, the results indicate that investment liberalization from FTA increases IFDI. In particular, its magnitude becomes larger as investor-state dispute settlement is included in the chapter of agreement. (The rest omitted)