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A Study on the Impact of Bilateral Investment Treaty on Foreign Direct Investment: A Comparative Analysis of Cases in South Korea and Japan

  • JOURNAL OF INTERNATIONAL STUDIES
  • Abbr : jois
  • 2020, 32(), pp.147~178
  • DOI : 10.22971/jois.32..202012.147
  • Publisher : The Keimyung Institute for International Studies
  • Research Area : Social Science > Area Studies > Regional Studies in general
  • Received : November 15, 2020
  • Accepted : December 17, 2020
  • Published : December 31, 2020

Park, Geonwoo ORD ID 1

1건국대학교

Candidate

ABSTRACT

The purpose of this study is to test the status of bilateral investment treaty between South Korea and Japan. It is to empirically analyze the impact of companies in individual countries in carrying out foreign direct investment. Compared to Korea, Japan has a considerable amount of overseas investment. However, the size of bilateral investment agreements is only 30 percent of Korea's. Gravity models were used for empirical analysis. The analysis shows that the conclusion of BIT between Korea and the investment attraction countries is significant in the positive direction of the increase in investment. The case of Japan is also same as South Korea. In addition to these results, the ratification of the BIT itself is important, but it should be actively used as a means to promote practical FDI. Therefore, qualitative enhancement is needed. This study is meaningful in that it empirically analyzed the impact of the conclusion of BIT on investment.

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