The Effect of FDI on Economic Development : A Comparative Study of South Korea and Sub-Saharan Africa
- 주제(키워드) FDI and Economic Development
- 발행기관 고려대학교 국제대학원
- 지도교수 Park, Sung-Hoon
- 발행년도 2010
- 학위수여년월 2010. 2
- 학위구분 석사
- 학과 국제대학원 국제학과
- 원문페이지 53 p
- 실제URI http://www.dcollection.net/handler/korea/000000021327
- 본문언어 영어
- 제출원본 000045590063
초록/요약
This study sought to demonstrate how openness to Foreign Direct Investment (FDI) was an important element for South Korea’s quick economic development while skepticism towards FDI became the main reason the Sub-Saharan Africa remained locked in extreme poverty. The study also sought to find out whether and how the South Korean successful economic development can be a model for the Sub-Saharan African countries. The study’s central argument was founded on the premise that Trade Liberalization can help reduce extreme poverty. The triangulation around the main problem of this study has been made from the following perspectives: first, technological knowledge is essential to a sustainable economic development; second, FDI plays a key role in transferring vital technological knowledge into host countries; third, openness to Free Trade is a necessary condition for countries to attract FDI. The study is based on existing literature on FDI, particularly in relation to the role technological knowledge transferred in the process plays in speeding up economic development of host countries. The study reviewed previous empirical research in the field of Free Trade and FDI and also examined relevant documentation including web pages and print publications related to the subject. The study found a strong correlation between trade liberalization, openness to FDI and a sustainable economic development and concluded that openness to Free Trade encourages inbound FDI and this paves the way to a smooth transfer of knowledge vital to a long term sustainable economic development.
more목차
1. Introduction 1
2. Relationship between FDI and Economic Growth 8
2.1 Symbiotic Relationship between FDI and Economic Growth 8
2.2 Literature on Potential Benefits of FDI 8
2.3 How to Maximize the Benefits of FDI? 11
3. FDI and Economic Situation of South Korea 13
3.1 South Korea Encouraged Investment from Foreign Companies 13
3.2 Evolution of FDI in South Korea 14
3.3 South Korea's Economic Growth: Export vs. Investment 19
4. FDI and Economic Situation of Sub-Saharan Africa 21
4.1 Bias against Free Trade in Developing Countries 21
4.2 Protectionism and its Negative Impact on Economic Development 22
4.3 Sub-Saharan Africa Received more Foreign Aid than FDI 24
4.4 Lack of Technological Knowledge and its Negative Impact on Trade Balance 27
5. South Korean FDI Policies and Implications For African Economic Growth 29
5.1 Lesson One: Be Open to Free Trade 29
5.2 Lesson Two: Attract as much FDI as Possible 30
5.3 Lesson Three: Learn by Trading 33
6. Conclusion 35
7. References 38
8. Appendix 44
