Acticle Foreign Direct Investment of korea in Vietnam - In Economic Security View

2018 ◽  
Vol 34 (3) ◽  
Author(s):  
Vu Thi Nhung
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Economic Security ◽  
Viet Nam ◽  
Foreign Economic Policy ◽  
Fdi Inflows ◽  
Security Issues ◽  
The Republic ◽  
Security View ◽  
Business And Management

Since the Doi moi of Vietnam in 1986, the Republic of Korea (ROK) has quickly invested in Vietnam. From the ROK’s foreign economic policy, Vietnam is currently the third largest investment partner, and the ROK considers Vietnam as an important destination with its competitive advantages such as potential market, statble political environment, geo-strategic position. For Vietnam, the ROK is the biggest FDI provider with a series of projects worth billions of dollars. It is no doubt for the positive impacts that the FDI inflows bring, the ROK’s investment in Vietnam also has its salient characteristics and poses complex security issues as well. Based on a review of the ROK’s FDI inflows in Vietnam, this article highlights the characteristics of these investment activities from an economic security perspective, since then it provides some recommendations for more efectively using reinforcement FDI inflows in Vietnam in the coming years. Keywords FDI, the Repubic of Korea, Vietnam, FDI, economic security References [1]: “Tình hình đầu tư nước ngoài Việt Nam quý I năm 2018”, Cục đầu tư nước ngoài, Bộ Kế hoạch & đầu tư, nguồn http://fia.mpi.gov.vn/tinbai/5473/Tinh-hinh-DTNN-Quy-I-nam-2018, truy cập ngày 1/4/2018.[2]: Kim, S.H., Understanding Vietnam, Yeonhap News Press, Seoul, 2015. [3] Theo thống kê của Bộ Kế hoạch và Đầu tư tính đến đầu năm 2018.[4], [5]: Ji Hyun Oh, Jai S. Mah, The Patterns of Korea’s Foreign Direct Investment in Vietnam, Open Journal of Business and Management, 2017, 5, pp. 253-271; “Hàn Quốc và “làn sóng” đầu tư thứ ba vào Việt Nam”, VnEconomy, 18/11/2016.[6]: Nguyễn Chiến Thắng, Bùi Thị Hồng Ngọc, “Thu hút FDI của Hàn Quốc vào Việt Nam: Thực trạng và định hướng”, Tạp chí Nghiên cứu Kinh tế, số 430-Tháng 3/2014, tr. 59-67.[7]: Ngô Thị Trinh, “Bước phát triển mới trong quan hệ hợp tác đầu tư của Hàn Quốc”, Tạp chí Những vấn đề kinh tế và chính trị thế giới, số 11(139)/2007, tr. 75-80[8]: Anwar, S. and Nguyen, L.P., “Absorptive Capacity, Foreign Direct Investmentlinked Spillovers and Economic Growth in Vietnam”, Asian Business and Management, 2010, No. 9, pp. 553-570.[9]: Bạch Dương, “Hàn Quốc và “làn sóng” đầu tư thứ ba vào Việt Nam”, VnEconomy, 18/11/2016.[10]: Ji Hyun Oh, Jai S. Mah, “The Patterns of Korea’s Foreign Direct Investment in Vietnam”, Open Journal of Business and Management, 2017, No. 5, pp. 253-271; [11]: Gill, A., “Internationalization of Firms: An Analysis of South Korean FDI in India”, Seoul Journal of Economics, 2014, No. 27, pp. 87-114.[12]: Tien, Q.T., “Reforms in FDI Policy and the Investment Climate in Vietnam”, Journal of World Trade, 2008, No. 42, 1179-1202.[13]: “Tiếp tục gia tăng đầu tư của Hàn Quốc vào Việt Nam”, Cục đầu tư nước ngoài, Bộ Kế hoạch & đầu tư, nguồn http://fia.mpi.gov.vn/tinbai/5131/Tiep-tuc-gia-tang-dau-tu-cua-Han-Quoc-vao-Viet-Nam, truy cập ngày 10/3/2018.[14]: Ngô Thị Trinh, “Bước phát triển mới trong quan hệ hợp tác đầu tư của Hàn Quốc”, Tạp chí Những vấn đề kinh tế và chính trị thế giới, số 11(139)/2007, tr. 75-80.[15]: Nguyễn Chiến Thắng, Bùi Thị Hồng Ngọc, “Thu hút FDI của Hàn Quốc vào Việt Nam: Thực trạng và định hướng”, Tạp chí Nghiên cứu Kinh tế, số 430-Tháng 3/2014, tr. 59-67.[16]: Vũ Hải Thanh, Lê Văn Mỹ, “Hợp tác giữa Hàn Quốc với các quốc gia tiểu vùng sông Mekong”, Tạp chí Nghiên cứu Đông Bắc Á, số 2(180) 2-2016, tr. 34-42.

scholarly journals Impact of Foreign Direct Investment Inflows on Economic Growth; the Case of the Republic of Seychelles

2019 ◽  
Author(s):  
Yusheng Kong ◽  
Sampson Agyapong Atuahene ◽  
Geoffrey Bentum-Mican ◽  
Abigail Konadu Aboagye
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Least Square ◽  
Small Island ◽  
Host Countries ◽  
Fdi Inflows ◽  
Economic Trends ◽  
The Republic ◽  
The Impact

This paper aims to research whether there is link between FDI inflows and Economic growth in the Republic of Seychelles Island. The ordinary least square results obtained shows that in the impact of FDI inflows on economic growth is low. Small Island Developing States attracts less FDI inflow because they are limited to few resources that attracts overseas firms which results in retarded development. The research lighted that impact of foreign direct investment on host countries does not only depend on the quality and quantity of the FDI inflows but some other variables such as the internal policies and the management skills, market structures, economic trends among others.

Foreign Direct Investment Operations of International Businesses and Their Impact in Turkey

2020 ◽  
Vol 9 (1) ◽  
pp. 1-11
Author(s):  
Omer Yurtseven ◽  
Dilek Temiz Dinç ◽  
Aytaç Gökmen
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Least Squares Method ◽  
Turkish Republic ◽  
Fdi Inflows ◽  
Augmented Dickey Fuller ◽  
The Republic ◽  
Republic Of Turkey ◽  
Trade And Investment

The Republic of Turkey is located at the crossroads of many trade and investment routes, converging East with the West and North with the South. However, Turkey is not self-sufficient with respect to capital formation. As a result, it wishes to obtain the deficient part of the capital stock from foreign sources, mainly from foreign direct investment (FDI). The purpose of this paper is to examine the FDI inflows to the Turkish Republic and its effect on economic growth by employing the augmented Dickey-Fuller test, Phillips-Perron, Kwiatkowski, Phillips, Schmidt, Shin unit root tests, and least squares method. The results indicate that FDI inflows to Turkey bring about economic growth.

scholarly journals Economic Growth and Investment Activity as Basic Elements and Indicators of Economic Security and Their Relationship with National and International Security

2018 ◽  
Vol 24 (2) ◽  
pp. 76-81
Author(s):  
Elitsa Petrova
Keyword(s):  
Economic Growth ◽  
European Union ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Economic Security ◽  
Gdp Per Capita ◽  
The European Union ◽  
Investment Activity ◽  
Per Capita ◽  
The Republic

Abstract The economic potential of a country is directly related to a policy of creating new jobs, increasing labour productivity, balancing energy and materials consumption, technological innovation, refurbishing the production base, and taking action to create an environment for attracting investment and stimulating domestic consumption, as well as increasing exports of goods and services. A key feature of the economic system, that determines its ability to maintain normal living and working conditions for the population, is to guarantee and protect the sustainable development of the economy and the realisation of national economic interests. This article is addressed to two main economic security indicators - economic growth and investment activity of the state. It presents a specific comparison of real GDP per capita and growth rate in the European Union, the Eurozone and the Republic of Bulgaria and GDP per capita in purchasing power standards in the European Union, the Eurozone and the Republic of Bulgaria. The flow of foreign direct investment by economic sectors in the Republic of Bulgaria is been considered, including annual data, foreign direct investment flows by countries and the international position of the Republic of Bulgaria in this process

scholarly journals RELATIONSHIP BETWEEN EASE OF DOING BUSINESS INDICATORS AND THE FOREIGN DIRECT INVESTMENT INFLOWS IN THE REPUBLIC OF SERBIA

2019 ◽  
pp. 269
Author(s):  
Marko Janaćković ◽  
Marija Petrović-Ranđelović
Keyword(s):  
Economic Policy ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Business Environment ◽  
Policy Makers ◽  
Fdi Inflows ◽  
Doing Business ◽  
Ease Of Doing Business ◽  
The Republic ◽  
The Relationship

Significance of easy of doing business indicators as determinants of FDI inflows has attracted attention in establishing their connections. The aim of the research is to examine the relationship between the ease of doing business indicators and foreign direct investment (FDI) inflows. Dynamic and correlation analysis are applied in the consideration of the interdependence of doing business indicators: Starting Business, Construction Permits, Getting Electricity, Registering Property, Getting credit, Paying taxes, Trading across borders, Enforcing contracts, and Resolving insolvency with FDI inflows. The obtained results show that Resolving insolvency and Construction Permits have the highest degree of agreement with FDI, while the negative agreement with FDI trends is shown by Getting Electricity, Registering Property, Getting Credit, and Enforcing contracts. The main results of this research are useful for economic policy makers because they provide a good basis for formulating the strategy of improving the business environment in the Republic of Serbia.

Economic and legal instruments for the realization of foreign direct investment in infrastructure sectors of the economy

2020 ◽  
pp. 47-55
Author(s):  
Orshanska Marіana
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
High Growth ◽  
Well Being ◽  
Gradual Improvement ◽  
Fdi Inflows ◽  
Investment Projects ◽  
Analysis And Synthesis ◽  
High Level ◽  
Fdi Attraction

The purpose of the article is to determine the nature, characteristics and keyproblems of the main types of economic and legal instruments for the realizationof foreign direct investment (FDI). the methodological basis of the study is asystematic approach to the processing and compilation of statistics and indicators,as well as methods for their comparison, analysis and synthesis and a method offorecasting decisions on the use of investment potential to increase the attractivenessand volume of FDI attraction. The scientific novelty of the research lies in theanalysis of greenfield and brownfield strategies as the main forms of FDIimplementation, the disclosure of the content and interpretation of data on thereal state of FDI attraction, the search for opportunities to improve the investmentclimate and effective mechanisms for attracting foreign investors. conclusions. Itis confirmed that the investment attractiveness and rating of the country in theinternational market are the main factors for attracting investors. Inaccessibleinfrastructure, inefficient judicial system, high level of corruption and imperfectlegislation are the main obstacles that need to be overcome in order to attractforeign investors’ funds, providing a full package of assistance and support ateach stage of the implementation of investment projects. Greenfield and brownfield(M&A) are the most effective forms of FDI in order to achieve high growth ratesof the domestic economy, improve the level of population well-being andinternationally enter Ukraine. An analysis of the statistics on the effectiveness ofinnovative enterprise development projects, the characteristics of economic andlegal instruments indicate the gradual improvement of the investment climate andthe promotion of FDI inflows into the region’s economy through the implementationof greenfield and brownfield strategies. Examples of effective implementation ofthese strategies in the creation of new enterprises, companies of foreignrepresentation, which are expanding their capacity and entering new domesticmarkets are given. Examples of the brownfield strategy have been analyzed torestart existing and high-quality structural and organizational changes in inefficiententerprises, which have given impetus to improving the economic environment,investment attractiveness of the economy of the region and the country as a whole.

An Empirical Investigation of India’s Outward Foreign Direct Investment: A Macro Perspective

2019 ◽  
Vol 5 (2) ◽  
pp. 79-88
Author(s):  
Dikshita Kakoti
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Real Effective Exchange Rate ◽  
Outward Foreign Direct Investment ◽  
Fdi Inflows ◽  
Long Run ◽  
Increasing Trend ◽  
Effective Exchange ◽  
Short Run ◽  
Effective Exchange Rate

Since 1990, globalization of Indian economy led to a speedy growth of foreign direct investment (FDI) inflows and simultaneously outward foreign direct investment (OFDI) also shows an increasing trend. However, India’s OFDI has attracted a little attention from the researchers and they have considered the OFDI in terms of commitments or approved equities. The motivation of this article is to investigate the India’s macro factors influencing actual OFDI flows from India by empirically recognizing four factors, namely gross domestic product, inward FDI, real effective exchange rate, and real interest rate over the period 1980–2016. The study has used Augmented Dicky-Fuller (ADF) and Phillips–Perron (PP) Unit root tests for checking the stationarity of the variable of the model. Later on, autoregressive distributive lag (ARDL) model and error correction mechanism is used for testing the long-run as well as short-run dynamics of the model. The result shows that all the selected variables have positive and significant influence on India’s outward investment flows.

scholarly journals Causal Links between Trade Openness and Foreign Direct Investment in Romania

2021 ◽  
Vol 14 (3) ◽  
pp. 90
Author(s):  
Malsha Mayoshi Rathnayaka Mudiyanselage ◽  
Gheorghe Epuran ◽  
Bianca Tescașiu
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Trade Openness ◽  
Test Procedure ◽  
Real Effective Exchange Rate ◽  
Foreign Direct Investments ◽  
Causality Test ◽  
Fdi Inflows ◽  
Distributed Lag ◽  
Long Run

In this increasingly globalized era, foreign direct investments are considered to be one of the most important sources of external financing for all countries. This paper investigates the causal relationship between trade openness and foreign direct investment (FDI) inflows in Romania during the period 1997–2019. Throughout this study, Trade Openness is the main independent variable, and Gross Domestic Product (GDP), Real Effective Exchange Rate (EXR), Inflation (INF), and Education (EDU) act as control variables for investigating the relationships between trade openness (TOP) and FDI inflow in Romania. The Auto Regressive Distributed Lag (ARDL) Bounds test procedure was adopted to achieve the above-mentioned objective. Trade openness has negative and statistically significant long-run and short-run relationships with FDI inflows in Romania throughout the period. Trade openness negatively affects the FDI inflow, which suggest that the higher the level of openness is, the less likely it is that FDI will be attracted in the long run. The result of the Granger causality test indicated that Romania has a unidirectional relationship between trade openness and FDI. It also showed that the direction of causality ran from FDI to trade openness.

scholarly journals Is Russia successful in attracting foreign direct investment? Evidence based on gravity model estimation

2016 ◽  
Vol 16 (3) ◽  
pp. 245-267 ◽  
Author(s):  
Oleg Mariev ◽  
Igor Drapkin ◽  
Kristina Chukavina
Keyword(s):  
Foreign Direct Investment ◽  
Gravity Model ◽  
Host Country ◽  
Direct Investment ◽  
Recipient Country ◽  
Developed Countries ◽  
Likelihood Method ◽  
Empirical Estimation ◽  
Fdi Inflows ◽  
Russian Economy

Abstract The aim of this paper is twofold. First, it is to answer the question of whether Russia is successful in attracting foreign direct investment (FDI). Second, it is to identify partner countries that “overinvest” and “underinvest” in the Russian economy. We do this by calculating potential FDI inflows to Russia and comparing them with actual values. This research is associated with the empirical estimation of factors explaining FDI flows between countries. The methodological foundation used for the research is the gravity model of foreign direct investment. In discussing the pros and cons of different econometric methods of the estimation gravity equation, we conclude that the Poisson pseudo maximum likelihood method with instrumental variables (IV PPML) is one of the best options in our case. Using a database covering about 70% of FDI flows for the period of 2001-2011, we discover the following factors that explain the variance of bilateral FDI flows in the world economy: GDP value of investing country, GDP value of recipient country, distance between countries, remoteness of investor country, remoteness of recipient country, level of institutions development in host country, wage level in host country, membership of two countries in a regional economic union, common official language, common border and colonial relationships between countries in the past. The potential values of FDI inflows are calculated using coefficients of regressors from the econometric model. We discover that the Russian economy performs very well in attracting FDI: the actual FDI inflows exceed potential values by 1.72 times. Large developed countries (France, Germany, UK, Italy) overinvest in the Russian economy, while smaller and less developed countries (Czech Republic, Belarus, Denmark, Ukraine) underinvest in Russia. Countries of Southeast Asia (China, South Korea, Japan) also underinvest in the Russian economy.

Effects of Infrastructure Development on Foreign Direct Investment in Kenya

2016 ◽  
Vol 8 (2) ◽  
pp. 93-110 ◽  
Author(s):  
Carol Teresa Wekesa ◽  
Nelson H. Wawire ◽  
George Kosimbei
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Trade Openness ◽  
Transport Infrastructure ◽  
Series Data ◽  
Infrastructure Development ◽  
Fdi Inflows ◽  
Year 2000 ◽  
Quality Infrastructure

Kenya’s foreign direct investment (FDI) inflows as a percentage of GDP have been increasing negligibly over the last 4 years, increasing from 0.4 per cent in 2010 to 0.9 per cent in 2013. And yet evidence shows that quality infrastructure lowers the cost of doing business and thus attracts FDI. Kenya has visible signs of infrastructure inadequacy and inefficiencies despite the fact that since the year 2000, there has been increased budgetary allocation to the infrastructure sector. This study, therefore, sought to determine the effects of transport, energy, communication and water and waste infrastructure development on FDI inflows in Kenya. The study used annual time series data sourced from Central Bank of Kenya, World Bank and the United Nations Conference on Trade and Development (UNCTAD). Using multiple regression analysis, it was established that improved transport infrastructure, communication infrastructure, water and waste infrastructure, exchange rate, economic growth and trade openness are important determinants of FDI inflows into Kenya. Hence, for Kenya to attract more FDI, continued infrastructural development is key since quality infrastructure affords investors a conducive investment climate in which to operate.

scholarly journals Dynamic Causal Relationships among GDP, Exports, and Foreign Direct Investment (FDI) in the Developing Countries

2013 ◽  
Vol 14 ◽  
pp. 1-19 ◽  
Author(s):  
Mohsen Mehrara ◽  
Amin Haghnejad ◽  
Jalal Dehnavi ◽  
Fereshteh Jandaghi Meybodi
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Foreign Direct Investment ◽  
Strong Evidence ◽  
Direct Investment ◽  
The Other ◽  
Fdi Inflows ◽  
Long Run ◽  
Short Run ◽  
Growth Hypothesis

Using panel techniques, this paper estimates the causality among economic growth, exports, and Foreign Direct Investment (FDI) inflows for developing countries over the period of 1980 to 2008. The study indicates that; firstly, there is strong evidence of bidirectional causality between economic growth and FDI inflows. Secondly, the exports-led growth hypothesis is supported by the finding of unidirectional causality running from exports to economic growth in both the short-run and the long-run. Thirdly, export is not Granger caused by economic growth and FDI inflow in either the short run or the long run. On the basis of the obtained results, it is recommended that outward-oriented strategies and policies of attracting FDI be pursued by developing countries to achieve higher rates of economic growth. On the other hand, the countries can increase FDI inflows by stimulating their economic growth.

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