earticle

영어

In this study, we test some hypotheses on whether foreign-invested companies in Busan have created jobs and spill-over effect on Busan local economy through backward and forward linkage with domestic firms. Panel regressions on both firm-level and macro data show that FDIs have directly increased jobs in the investing companies and also have indirectly increased sales in upstream and downstream companies. When the same regressions are run for two sub-samples, manufacturing vs. service industries, backward linkage effect turns out greater than forward linkage one in both cases.