KJCKorea
Journal Central

@article{ART001879803},
author={Hong, MI-Young},
title={The Effects of An Empirical Analysis of the FDI on the Service Industry in Korea: A Granger Causality Test},
journal={Journal of Tourism Sciences},
issn={1226-0533},
year={2014},
volume={38},
number={5},
pages={101-120}

TY - JOUR
AU - Hong, MI-Young
TI - The Effects of An Empirical Analysis of the FDI on the Service Industry in Korea: A Granger Causality Test
JO - Journal of Tourism Sciences
PY - 2014
VL - 38
IS - 5
PB - The Tourism Sciences Society Of Korea
SP - 101
EP - 120
SN - 1226-0533
AB - The current study examines the economic effect of FDI (Foreign Direct Investment) on the domestic economy in terms of the GDP (Gross Domestic Product) growth rate and employment rate, respectively. The inflow of FDI is believed to induce growth in the domestic economy in light of GDP and Employment. However, the growth in the domestic economy may attract the FDI inflow. Thus it is necessary to conduct the Granger causality test among the variables under consideration to determine the direction of flow. As we classify the sample in such sectors as the manufacturing industry, service industry (including the tourism industry), the industry-wise effect turns out to differently greatly among them. Contrary to the common belief, according to the Granger causality test, FDI neither causes growth of GDP, nor the increment of employment rate, in the manufacturing sector. In contrast, FDI leads to increase of GDP growth rate and the employment rate within the service sector. The growth of the service industry rather attracts the inflow of FDI not vice versa, this is particularly most pronounced with the impulse-response test. In conclusion, domestic investment is required to attract FDI inflow, with this sustainable growth can be achieved.
KW - Foreign Direct Investment;Service industry;Tourism industry;Granger causality test;Impulse response analysis
DO -
UR -
ER -

Hong, MI-Young. (2014). The Effects of An Empirical Analysis of the FDI on the Service Industry in Korea: A Granger Causality Test. Journal of Tourism Sciences, 38(5), 101-120.

Hong, MI-Young. 2014, "The Effects of An Empirical Analysis of the FDI on the Service Industry in Korea: A Granger Causality Test", Journal of Tourism Sciences, vol.38, no.5 pp.101-120.

Hong, MI-Young "The Effects of An Empirical Analysis of the FDI on the Service Industry in Korea: A Granger Causality Test" Journal of Tourism Sciences 38.5 pp.101-120 (2014) : 101.

Hong, MI-Young. The Effects of An Empirical Analysis of the FDI on the Service Industry in Korea: A Granger Causality Test. 2014; 38(5), 101-120.

Hong, MI-Young. "The Effects of An Empirical Analysis of the FDI on the Service Industry in Korea: A Granger Causality Test" Journal of Tourism Sciences 38, no.5 (2014) : 101-120.

Hong, MI-Young. The Effects of An Empirical Analysis of the FDI on the Service Industry in Korea: A Granger Causality Test. Journal of Tourism Sciences, 38(5), 101-120.

Hong, MI-Young. The Effects of An Empirical Analysis of the FDI on the Service Industry in Korea: A Granger Causality Test. Journal of Tourism Sciences. 2014; 38(5) 101-120.

Hong, MI-Young. The Effects of An Empirical Analysis of the FDI on the Service Industry in Korea: A Granger Causality Test. 2014; 38(5), 101-120.

Hong, MI-Young. "The Effects of An Empirical Analysis of the FDI on the Service Industry in Korea: A Granger Causality Test" Journal of Tourism Sciences 38, no.5 (2014) : 101-120.