한국의 대 EU 투자가 한국 수출입에 미친 효과

Trade Effects of Korea’s FDI in the European Union (EU)

Purpose– The purpose of this study was to analyse the effects of Korea’s outward foreign direct investment(FDI) on trade flows in EU countries and to investigate whether FDI and home country trade are complements or substitutes. Design/methodology/approach–This study analyses the trade effects of Korea’s outward FDI, using a panel data set consisting of 10 EU countries over a period covering 25 years (1994—2018). Findings–First, outward FDI to EU countries positively influence Korea’s trade flows. The results show that FDI was statistically significant and had a substantial effect on export and import flows. Second, GDP positively affects Korea’s trade flows, indicating that Korea’s exports depend on demand in both the importing country and the exporting country, Third, the FTA promotes Korea’s import flows from EU countries. Furthermore, currency fluctuations is also important factors for home country trade. Research implications or Originality– This study provides an analysis of the links between outward FDI and trade flows of home country on a macroeconomic level. Our results suggest that outward FDI and home country trade are complements. It must be noted that the most important determinant of trade flows is market size, implying the importance of demand factors in trade flows.