The Impact of the EU’s Trade Discrimination Policy on Foreign Direct Investment Mechanisms

The goal of this research is to highlight the variation in Korean manufacturing foreign direct investment (FDI) for the period of 1990-1997 in 14 European nations. Our special attention is dedicated to the examination of whether Korean investors’ attitudes are affected by the discriminatory trade measures imposed by the EU Commission. Our econometric results, tested by the application of ordinary least squares (OLS) with panel-corrected standard errors (PCSE), support the hypothesis that the internationalization of production of Korean multinationals in Europe is influenced by the intensity of the EU’s antidumping actions.