Laliew Angsakunwong. Impact of the republic of korea foreign direct investment on the development of CLMV. Master's Degree(Korean Studies). Chulalongkorn University. Center of Academic Resources. : Chulalongkorn University, 2010.
Impact of the republic of korea foreign direct investment on the development of CLMV
Abstract:
Foreign Direct Investment (FDI) brings the critical development in host
countries infrastructures such as public utility, information technology and
transportation systems. FDI also improves their peoples income and living standard.
Because of above mentioned benefits, many countries have continuously put efforts
to attract FDI. CLMV, consisting of Cambodia, Lao, Myanmar, and Vietnam, has
struggled to attract FDI and due to their plentiful natural resources, lower
manufacturing cost, and market opportunity, they have attracted FDI from many
countries. Korean FDI in CLMV is increasing and has been recently ranked top.
This study has objectives to determine the factors of the growth in gross
domestic products by means of linear regression and analyze causality between the
growth of Korean FDI and other factors by means of Granger Causality test, using
panel data (comprised of time series data and cross sectional data). The results
showed that the growth of Korean FDI significantly boosted the growth of Vietnams
GDP. The granger causality test affirmed that the growth of Korean FDI to CLMV
affects their GDP growth only in the first year. Finally, this study affirms the
effectiveness of Korean FDI in CLMV.