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

Causal relation between Sino-Korea FDI and exports

Related Document
Frame of Image
  • Causal relation between Sino-Korea FDI and exports
  • Lee, Doowon; Huh, Hyeon-Seung; Cho, Seonghoon
  • The Association of Korean Economic Studies


link
Title Causal relation between Sino-Korea FDI and exports
Similar Titles
Material Type Articles
Author(English)

Lee, Doowon; Huh, Hyeon-Seung; Cho, Seonghoon

Publisher

[Seoul]:The Association of Korean Economic Studies

Date 2007
Journal Title; Vol./Issue The Journal of the Korean Economy:vol. 8(no. 2)
Pages 19
Subject Country China(Asia and Pacific)
South Korea(Asia and Pacific)
Language English
File Type Link
Subject Economy < Trade
Economy < Direct Investment
Holding AKES

Abstract

The two ways to penetrate a foreign market are exports and FDI (Foreign Direct Investment). Both channels are important for Korean firms to sell products in the Chinese market. There is increasing concern in Korea that FDI into China is substituting Korean exports to China causing the fear of the ‘hollowing-out’ of Korean export industries. It is also claimed that Korean FDI into China would eventually induce more exports from Korea to China. The first objective of this paper is to examine which hypothesis is true using quarterly data of Korea-China FDI and exports from 1992 to 2005. To find causal relationship between FDI and export, Granger causality tests using a modified Wald test are carried out. Empirical study based on manufacturing industry data concludes that exports have influenced FDI from Korea to China during the given period. (The rest omitted)