Trade and foreign direct investment patterns in the Republic of Korea in the aftermath of the 1997 Asian financial crisis

Abstract

This paper analyses the impacts of the 1997 financial crisis on global multinational enterprises' (MNEs) investment behaviours towards Korea applying the system estimation methodology. Our results indicate that MNEs from the European Union (EU) area seemed to be more motivated by the sharp drop in value of the host economy's currency and imports, whereas the US and Japanese MNEs were relatively sluggish to respond to the crisis in number of projects.Griffith Business School, Department of International Business and Asian StudiesFull Tex