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A Study on the Impact of FDI in Dongnam Region on the Local and National Economy

Cho,GyeongLyeob 1 Kim, Young Duk 2 정호진 2 이동우 2

1한국경제연구원
2부산대학교

Accredited

ABSTRACT

The purpose of the study is to analyze an effect of foreigners direct investment in the Dongnam region(Busan, Ulsan and Gyeongnam) on other domestic regions and national economy with MRDCGE(Multi-Regional Dynamic Computable General Equilibrium Model). As the results of the analysis, they were as follows. First, FDI of the Dongnam region increased GRDP of the Dongnam GRDP of the whole area. Second, in an effect of FDI of the Dongnam region on national account, GDP, consumption and investment was increased. Third, in the event of making an estimate of income redistribution with Gini coefficient, FDI of the Dongnam region decreased income redistribution by each region slightly. However, in the event of making an estimate of income redistribution by each region through Lorenz curve, it was not distinct whether FDI of the Dongnam region improved or decreased income redistribution by each region. Conclusively, it is estimated that FDI of the Donganm region improves an efficiency of other regions and national economy as well as the Dongnam region, not largely decreasing income distribution by each region.

Citation status

* References for papers published after 2022 are currently being built.