초록 열기/닫기 버튼
Purpose – This study examines the interrelationships between foreign direct investment, international trade, and economic growth, with a particular focus on expanded global value chains since the 1990s. Design/methodology/approach– This study investigates the feedback effects between foreign direct investment and international trade on economic growth in G7 countries and South Korea by using the annual time series data between 1990 and 2018. Empirically, we perform the tests of unit roots, causal relation and cointegration. Findings– Foreign direct investment is a causal factor affecting international trade in G7 countries and Korea while trade is a causal factor influencing foreign direct investment in the US, France, Canada, and Korea, indicating a feedback relationship between net foreign direct investments and net exports. In particular, we find that a negative feedback increases the real income in the US and Korea, while a positive feedback increases the real income in France and Canada. Research implications or Originality– The results confirm that economic growth could be driven by the feedback effects between foreign direct investment and international trade.
