FDI and the Two Margins of International Trade: Evidence from Korea

• 발행기관: 한국무역연구원
• 저자명: Bongchan Ha Ki-chun Kang
• 간행물 정보: 『무역연구』제12권 제6호, 169~185쪽, 전체 17쪽
• 주제분류: 경제경영 > 무역학
• 파일형태: PDF
• 발행일자: 2016.12.31

영문 초록

The attempt to examine the relationship between FDI and trade has a long history in international trade. There is little corresponding empirical research examining the impact of FDI flows on the two margins. FDI may expand trade through two channels, the extensive margin (the range of existing products that countries export) or the intensive margin (higher volume in each product). We separate the effect of FDI on trade into the extensive and intensive margins of trade. Using Korean outward FDI and export data spanning the period from 1988-2006, this paper finds evidence that the outward FDI flows promote both the extensive and intensive margins of Korean exports, and the FDI effects work mainly through the intensive margin, rather than the extensive margin. The findings imply that governments promoting FDI in order to increase trade should take into account that FDI leads to a complementary effect through the two channels that stimulate the demand for varieties or the volume.

키워드

Extensive Margin FDI Intensive Margin Korea