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Intra-Industry Foreign Direct Investment and Intra-Industry Trade in Korea

Jung-Soo Seo, Jong-Soon Kang and David Kim ()

Asia Pacific Economic Papers from Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University

Abstract: This paper examines the relationship between international trade and foreign direct investment (FDI). In particular, it explores the impact of FDI on the pattern of trade in Korea during the 1990s. There were relatively rapid increases in outward and inward FDI flows; however, for manufacturing industries, the overall relationship between intra-industry trade and intra-industry FDI seems to be weak, though mainly positive. This finding suggests that globalisation of the Korean economy has so far resulted from intra-industry trade rather than international production through FDI.

JEL-codes: O53 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2002-07
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https://crawford.anu.edu.au/pdf/pep/pep-329.pdf (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:csg:ajrcau:329

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