This investigation explored a linkage between trade and FDI based on the Granger-causality test and Geweke`s decomposition method performed using a bilateral data set between Korea and its major trading partners: U.S.A, Japan and China. The investigat...
This investigation explored a linkage between trade and FDI based on the Granger-causality test and Geweke`s decomposition method performed using a bilateral data set between Korea and its major trading partners: U.S.A, Japan and China. The investigation`s findings indicated a two-way linkage between Korea`s export and FDI outflow to Japan. More than half of the linear feedback between export and FDI outflow could be accounted for by a simultaneous two-way linkage between the two series.