earticle

영어

The rapid shift in global economic relationships in recent years is nowhere more apparent than with respect to foreign direct investment(FDI). The pattern of global FDI have changed dramatically in 1990`s. The most obvious evidence of this change is reversal in the status of each country from net outbound direct investor to net host country for FDI. This study explores the determinants analyzing the variation across foreign investors of FDI in Korea. Two types of foreign investors(such as firms from developing and developed countries) in Korea are hypothesized to explain this variation. At least in part, this study is helpful in explaining what motivates foreigners to invest in Korea. As a result, the findings of this study in firms from developed countries support the hypotheses that OWN(ownership) and TS(total sales) are positively related, and TX(coporate tax) and W(wage) are negatively related to FDI in Korea. On the while, in firms from developing countries, empirical support is found for OWN, MZ(market size), PR(political risk), W, and TX.