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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| Authors: | BANG NAM JEON SUNG SUP RHEE |
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| Affiliation: | Jeon:;Professor, Department of Economics and International Business, Bennett S. LeBow College of Business, Drexel University, Philadelphia, PA 19104. Phone 1-215-895-2125, Fax 1-215-895-6975, E-mail
Rhee:;Professor, Department of World Commerce, College of Business and Economics, Soongsil University, Seoul 156-743, Korea. Phone 82-2-820-0574, Fax 82-2-824-4384, E-mail |
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| 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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