earticle

영어

This study used the direct investment data drawn from 20 provinces and cities in China from 2009 to 2015 to analyze the determinants of Korean firms' FDI location choice in China. It was chosen by the investment amount for each province and city in China as a dependent variable and the determinants of potential FDI location choice were defined by the market size, labor cost, labor quality, social infrastructure, firm agglomeration level, and technology level as independent variables. An empirical test was conducted using a panel data regression analysis. As a result, it is shown that Korean firms tend to invest directly in areas with high market size, low wage level and high quality labor when they decide the location of FDI in China. In particular, the per capita GRDP variable indicating the market size of the region is more important factor than the low labor cost in determining the location of FDI in China. On the bases of the results of this study, it will contribute to the decision making of Korean firms' FDI location choice in China. in addition, it can be used as a reference for establishing policies on FDI and will help clarify the relationship between foreign capital and regional economic growth.