| Publication |
2006.
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| Summary/Abstract |
A debate surrounds the trade impact of outward foreign direct investment (FDI), notably as to whether outward FDI complements or substitutes for a home countrys exports. This paper uses a fixed effect panel data econometric model to investigate the experience of Korean outward FDI in the ASEAN-4, during the 19872002 period. The results show that FDI stocks in ASEAN do not have discernable trade substituting effects on either Koreas exports or imports. However, it is found that contemporaneous FDI flows marginally contribute to Koreas exports to the region.
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