earticle

영어

Recently foreign direct investments are taking up large portion of economic dynamism in global economy. Recently FDI is considered as multiple functional that affects industries and economy by entailing the movement of many intangible assets. There had been lots of study conducted for economic effects of FDI through such a rapid development and new awareness of the activity. Meanwhile many shortcomings of previous studies and analysis have been picked out. In particular there was limitation for handling interlinkages among industries, the differences inherent to various FDI types, and absorption capacity of domestic industries. We proposed an input-output model that reflects these problems and it is to analyze productivity effects embedded in FDI. Especially we took note about Leontief approach that had been conventionally used and additionally suggested Ghosh specification to model merger and acquisition as a type of FDI. Moreover, we reflected absorption capacity in industries on analysis based on human capital which affects process of technology transfer. As a result, we found that sectors earned different productivity effects depending on forms of investment and deduced main intermediary industries diffusing the impact throughout the industries and economies.