Do domestic firms benefit from FDI?: evidence from Korean manufacturing industries
FDI is considered to be a meaningful component for the economic growth of a country. But, it has not been proven clear that the effect of FDI is really beneficial in a host country regardless of the state of the countries. This paper tries to provide an evidence of the effect of FDI in developing co...
Main Authors: | , , |
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Format: | Article |
Language: | English |
Published: |
Emerald Publishing
2008-12-01
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Series: | Journal of International Logistics and Trade |
Online Access: | https://www.emerald.com/insight/content/doi/10.24006/jilt.2008.6.2.103/full/pdf |
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author | Tae Seung Kim Hun-Koo Ha Jin Kook Lee |
author_facet | Tae Seung Kim Hun-Koo Ha Jin Kook Lee |
author_sort | Tae Seung Kim |
collection | DOAJ |
description | FDI is considered to be a meaningful component for the economic growth of a country. But, it has not been proven clear that the effect of FDI is really beneficial in a host country regardless of the state of the countries. This paper tries to provide an evidence of the effect of FDI in developing country. To do this, we relate industry level value-added to inward and outward FDI stocks in Korea in a production function framework. Especially we divide inward FDI into FDI on the Greenfield projects and FDI for M&A. The results show that the effect of inward FDI as a whole on productivity is not statistically significant, though we can presume that the direction is positive, whereas the effect of outward FDI is strongly negative, and is statistically significant. But the effects of inward FDI by the characteristics of FDI are not differentiated. |
first_indexed | 2024-03-11T06:39:22Z |
format | Article |
id | doaj.art-e8c9bbcb3bc84616b69c78d43469bffb |
institution | Directory Open Access Journal |
issn | 1738-2122 2508-7592 |
language | English |
last_indexed | 2024-03-11T06:39:22Z |
publishDate | 2008-12-01 |
publisher | Emerald Publishing |
record_format | Article |
series | Journal of International Logistics and Trade |
spelling | doaj.art-e8c9bbcb3bc84616b69c78d43469bffb2023-11-17T10:43:18ZengEmerald PublishingJournal of International Logistics and Trade1738-21222508-75922008-12-016210311910.24006/jilt.2008.6.2.103Do domestic firms benefit from FDI?: evidence from Korean manufacturing industriesTae Seung Kim0Hun-Koo Ha1Jin Kook Lee21Graduate School of Logistics, Inha University, 253 Yonghyun-dong, Nam-Gu Incheon 402-751, Korea2Department of Law and Asia Pacific School of Logistics, Inha University, 253 Yonghyun-dong, Nam-Gu Incheon 402-751, Korea1Graduate School of Logistics, Inha University, 253 Yonghyun-dong, Nam-Gu Incheon 402-751, KoreaFDI is considered to be a meaningful component for the economic growth of a country. But, it has not been proven clear that the effect of FDI is really beneficial in a host country regardless of the state of the countries. This paper tries to provide an evidence of the effect of FDI in developing country. To do this, we relate industry level value-added to inward and outward FDI stocks in Korea in a production function framework. Especially we divide inward FDI into FDI on the Greenfield projects and FDI for M&A. The results show that the effect of inward FDI as a whole on productivity is not statistically significant, though we can presume that the direction is positive, whereas the effect of outward FDI is strongly negative, and is statistically significant. But the effects of inward FDI by the characteristics of FDI are not differentiated.https://www.emerald.com/insight/content/doi/10.24006/jilt.2008.6.2.103/full/pdf |
spellingShingle | Tae Seung Kim Hun-Koo Ha Jin Kook Lee Do domestic firms benefit from FDI?: evidence from Korean manufacturing industries Journal of International Logistics and Trade |
title | Do domestic firms benefit from FDI?: evidence from Korean manufacturing industries |
title_full | Do domestic firms benefit from FDI?: evidence from Korean manufacturing industries |
title_fullStr | Do domestic firms benefit from FDI?: evidence from Korean manufacturing industries |
title_full_unstemmed | Do domestic firms benefit from FDI?: evidence from Korean manufacturing industries |
title_short | Do domestic firms benefit from FDI?: evidence from Korean manufacturing industries |
title_sort | do domestic firms benefit from fdi evidence from korean manufacturing industries |
url | https://www.emerald.com/insight/content/doi/10.24006/jilt.2008.6.2.103/full/pdf |
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