earticle

영어

Purpose of This study is to investigate the role of corruption in Foreign Direct Investment. To achieve this objective, this study analyzed the impact of corruption on Korea’s foreign direct investment in 10 ASEAN countries from 2000 to 2019 using 200 observations (country-year) using panel analysis. As a result, it was confirmed that the FDI inward of ASEAN member countries is s teadily increasing. This indirectly supports the evidence for the importance of FDI inflows from ASEAN member states. Furthermore, among the determinants of Korea’s foreign direct investment, corruption in ASEAN member countries was found to have a rather positive effect. It was found that the major foreign direct investment inflows currently being made in ASEAN member countries is a form of vertical investment resulting from the reduction of production costs, and the country has a positional advantage. It is recognized that the country’s low transparency makes it possible to easily attract foreign direct investment. Besides, ASEAN member countries need to change their outward FDI type to an advanced country type in the long term, and it is judged that the low level of corruption will not be helpful in the long term to attract FDI. Corruption factors are contributing to overseas direct investment as a factor of the current l ocation advantage, but i t is j udged that improvement i s needed g radually i n social a nd economic aspects.