earticle

영어

The purpose of this paper is to find the determinants of Busan area companies’ outward FDI in Asia and China using the spatial autoregressive model. This study employs a spatial autoregressive model to explore if FDI into a host country or region may depend on the FDI in proximate countries or regions with Busan area companies’ outward FDI. Most previous studies ignored spatial interdependence to analyze the determinants of outward FDI. This study used panel data from 12 countries in Asia and 12 regions in China during 1991 to 2013. Empirical results of total Asia area show per GDP, POP, OPEN and spatial effects are positive and significant variables. Results of Non-manufacturing industry’s FDI in Asia excluding China reveal that spatial effects are insignificant. Results of total Chinese area show per POP, EDUE and spatial effects are positive and significant variables.