Exports, imports, FDI and GDP in the Republic of Korea: 1980-2014

Julen Berasaluce (jberasaluce@colmex.mx) and José Romero (jromero@colmex.mx)
Additional contact information
Julen Berasaluce: El Colegio de México
José Romero: El Colegio de México

Serie documentos de trabajo del Centro de Estudios Económicos from El Colegio de México, Centro de Estudios Económicos

Abstract: In this paper, we have set up an empirical analysis of the economic growth in Korea between 1980 and 2015, in order to identify the potential relationships between relevant variables. We chose to study Korea because is a country notable for applying industrial policies. We compare the export-led growth versus growth-driven exports hypotheses, we also compare the contribution of FDI to economic growth hypothesis versus its opposite, the idea that a rapid economic growth attracts FDI; we also compare other opposing hypotheses. A four-variable vector autoregression (VAR) is used to study the relationships between trade, foreign direct investment (FDI) and economic growth using quarterly data from 1980 to 2014. We estimated the Granger causality/Block exogeneity test, and calculated the Impulse Response Functions and Variance Decomposition. The main findings are that the three tests confirm the growth-driven exports hypothesis, as well as that FDI has no effect on economic growth or exports. We consider that these results for Korea have a significant relevance for Latin America and other regions that are searching for policies to enhance economic growth.

Keywords: South Korea; VAR; industrial policy; exports; imports; FDI; growth (search for similar items in EconPapers)
JEL-codes: C32 F14 F21 (search for similar items in EconPapers)
Date: 2015-12
New Economics Papers: this item is included in nep-fdg and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://cee.colmex.mx/dts/2015/DT-2015-6.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:emx:ceedoc:2015-06

Access Statistics for this paper

More papers in Serie documentos de trabajo del Centro de Estudios Económicos from El Colegio de México, Centro de Estudios Económicos Contact information at EDIRC.
Bibliographic data for series maintained by Ximena Varela (xvarela@colmex.mx).