The effects of foreign direct investment on regional growth and productivity

Jaegon Park

No 2018-11, AGI Working Paper Series from Asian Growth Research Institute

Abstract: To promote regional economic growth in the current global environment, nations have begun methodically combining internal assets with external capabilities. Against this backdrop, this paper demonstrates how foreign direct investment (FDI) — a major channel for participating in the global production network — influences regional economic development. Its key findings are as follows: 1) Korea has reached the stage where outbound overseas investments outpace inbound FDI, 2) FDI in Korea is heavily concentrated in a handful of regions and in particular the Seoul capital region, 3) inbound FDI has a statistically significant positive impact on regional growth and productivity and 4) outbound foreign investment weighs negatively on regional growth and productivity. The paper concludes by arguing the necessity of utilizing a global perspective in regional policymaking.

Keywords: GLOBAL PRODUCTION NETWORK; FOREIGN DIRECT INVESTMENT; GROWTH AND PRODUCTIVITY; REGIONAL POLICY; C33; D24; R11; R58 (search for similar items in EconPapers)
Date: 2018-11
New Economics Papers: this item is included in nep-cse, nep-eff, nep-fdg and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://id.nii.ac.jp/1270/00000149/ (text/html)
https://agi.repo.nii.ac.jp/?action=repository_acti ... bute_id=22&file_no=1 (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:agi:wpaper:00000149

Access Statistics for this paper

More papers in AGI Working Paper Series from Asian Growth Research Institute Contact information at EDIRC.
Bibliographic data for series maintained by Kazuki Tamura ().