earticle

영어

This study analyzes the factors affecting exports of Korea and China through the spatial metric model focusing on foreign direct investment and free trade agreements. In an analysis of the entire country, both Korea and China have shown a spatial effect. In the case of foreign direct investment, Korea has a positive impact on exports, but China seems to have had a negative impact. Korea has strong export characteristics for local production, but China is expected to replace exports. Korea has a positive spatial effect in the Asia-Pacific, the Middle East and Africa. However, it has been analyzed that there is a negative spatial effect in Europe. Foreign direct investment and free trade agreements seem to have a positive impact on exports, except in Europe. China has a spatial effect in most areas. Foreign direct investment in the Asia-Pacific region and the Middle East has a negative impact on exports. For OECD and developing countries, Korea appears to have a spatial effect in emerging economies and China in OECD countries. In Korea, foreign direct investment has a positive effect on exports in developing countries. China has a positive effect of foreign direct investment in OECD countries, but it is analyzed that foreign direct investment has a negative effect in developing countries. The implications of this study are as follows. First, it is important for Korea to utilize foreign direct investment strategy as a way to increase exports. In particular, it is necessary to build a foreign direct investment strategy targeting Asian countries using the new and southern policies. Second, it is necessary to expand free trade agreements to lower trade barriers and to systematically manage them. It is necessary to strategically manage free trade agreements in the flow of protection trade. Third, we need a strategy to diversify exports in preparation for the Post China era. It is necessary to establish a strategy to diversify exports by maintaining close relations with India and Southeast Asian countries in preparation for the trade war of major economies such as USA, China and EU.