The connection Between Trade and you may Foreign Financial support: Empirical Results for Taiwan and Southern Korea
This really is problems who may have enough time worried policymakers on high industrial nations, with worried about you’ll effects of outward FDI on the country’s harmony regarding money and you may a career of the employees. Therefore, plenty of empirical research has been composed from this problem of these countries, however to own developing or newly industrializing regions.
Lately, yet not, relative can cost you off labor inside the Taiwan and Korea have grown and you can, as a result, Taiwanese and you can Korean companies has tried to go up the fresh «creation ladder» to your more capital intensive (in addition to people-resource intense) businesses as well as have gone certain of the romancetale dating site creation items overseas. For this reason, the end result away from FDI for the trading also offers getting an issue away from policymakers inside the Taiwan and you will Korea.
Therefore, within this report we read the this dating empirically to possess Taiwan and you will Southern area Korea
In theory, often matchmaking ranging from FDI and you can exports-complementarity otherwise substitutability-you will definitely keep.
