Empirical Analysis on Causation among Service FDI, Service Trade and Economic Growth: Evidence form Korea

• 발행기관: 한국무역연구원
• 저자명: Won-Seok Choi Seung-Lin Hong
• 간행물 정보: 『무역연구』제14권 제6호, 63~78쪽, 전체 16쪽
• 주제분류: 경제경영 > 무역학
• 파일형태: PDF
• 발행일자: 2018.12.30

영문 초록

The Korean economy has shifted from the manufacturing industry to the service industry since the early 2000s. The purpose of this study is to analyze the causal relationships among trade, foreign direct investment, and economic growth in these transformed industrial structures. We applied the Vector Autoregression (VAR) model to analyze the causality between these variables and to estimate the short-term and long-term effects. As a result, service FDI and service exports were found to have a unidirectional effect on economic growth. In the Impulse Response Function, service exports and service FDI were found to have a significant effect on economic growth and service imports. We also found that service exports and service foreign direct investment have a significant impact on economic growth and service imports, and are also important for both variables in their short-term and long-term effects based on the Impulse Response Function and Forecast Error Variance Decomposition. However, the effect of the two variables gradually decreased over time. Therefore, in order for the Korean economy to grow in a service-oriented economy, it is necessary to develop measures for qualitative growth rather than quantitative expansion of service in exports and FDI.

목차

Ⅰ. Introduction

Ⅱ. Review of Related Literature

Ⅲ. Empirical Analysis and Discussion

Ⅳ. Conclusions and Recommendations

키워드

Economic Growth Services Foreign Direct Investment Services Trade