How Have Financialization and Offshoring Affected the Firm s Investment in Korea?
- Woocheol Lee(이우철) Joonil Kim(김준일)
- 강원대학교 경영경제연구소
- 아태비즈니스연구
- 제10권 제3호
- 등재여부 : KCI등재
- 2019.09
- 1 - 16 (16 pages)
This paper examines how firm’s investment has been affected by offshoring and financialization in Korea over the period 2000-2014 by using industry-level data collected from World Input Output Database (WIOD) and firm-level data collected from the KIS-Value Database. The findings are summarized as follows. First, offshoring index as expected shows a negative relationship with real investment. This negative impact is stronger in a large firm group. Second, there is a positive relationship between dividend payments and real investment. The positive relationship is greater in a small & medium-sized firm group. Third, the purchase of financial assets and the income generated from financial assets are positively related to real investment. The positive relationship is stronger in the small & medium-sized firm group. The empirical results show that firm size is a factor that effectively affects firm’s real investment. This paper suggests that the influence of financialization and offshoring on firm’s real investment should be assessed in various contexts rather than in a unilateral context.
Ⅰ. Introduction
Ⅱ. Literature Review
Ⅲ. Empirical Methods
Ⅳ. Econometric Results and Discussion
Ⅴ. Concluding Remarks