The Impact of Foreign Direct Investment on Economic Growth A Case Study of South Korea
The purpose of this paper is to explore the impact of Foreign Direct Investment (FDI) on economic growth in South Korea. In this study I use the secondary data. This study covers the time period from 1980 2009. This study attempts to determine empirical impact of FDI on South Korean economy using macroeconomic annual time series data. FDI, domestic investment, employment, export and human capital are considered as the endogenous variables for economic growth. The multiple regression are employed in this study. This study finds that there is a strong and positive impact of FDI on South Korean economic growth. Furthermore, the study indicates that human capital, employment and export also have positive and significant impact, while domestic investment has no significant impact on South Korean economic growth. The interaction effects of FDIhuman capital and FDI export indicate that the transfer of high technology and knowledge has an adverse impact on South Korean economic growth. JEL Classification Numbers: F14, O12, O40, O53