Inward foreign direct investment (FDI) is expected to grow further by virtue of economic globalization. A thorough understanding of the locational determinants of inward FDI will be conducive to enhanced efficiency ...Inward foreign direct investment (FDI) is expected to grow further by virtue of economic globalization. A thorough understanding of the locational determinants of inward FDI will be conducive to enhanced efficiency in attracting direct and SOC-related investments from foreign entities. This study analyzes 51 cases of inward direct foreign investment made in the Incheon free economic zone (IFEZ) from 2002 to 2009 to determine the factors influencing FDI volume, the relevance of locations and the correlation between investment size and location. First, the relationship between the loeational determinants of FDI and the total investment size (total expected project cost) is analyzed. Second, the relationship between the locational determinants of FDI and the FDI is analyzed. Third, the relationship between the locational determinants of FDI and the location choice is analyzed. The results indicate the determinants that influence locations and investment size of FDI entities; whether these factors exercise influence in the zone; and the factors that have relatively significant effects. Ultimately, based on the analytical findings, a few implications for policy and practice are derived.展开更多
文摘Inward foreign direct investment (FDI) is expected to grow further by virtue of economic globalization. A thorough understanding of the locational determinants of inward FDI will be conducive to enhanced efficiency in attracting direct and SOC-related investments from foreign entities. This study analyzes 51 cases of inward direct foreign investment made in the Incheon free economic zone (IFEZ) from 2002 to 2009 to determine the factors influencing FDI volume, the relevance of locations and the correlation between investment size and location. First, the relationship between the loeational determinants of FDI and the total investment size (total expected project cost) is analyzed. Second, the relationship between the locational determinants of FDI and the FDI is analyzed. Third, the relationship between the locational determinants of FDI and the location choice is analyzed. The results indicate the determinants that influence locations and investment size of FDI entities; whether these factors exercise influence in the zone; and the factors that have relatively significant effects. Ultimately, based on the analytical findings, a few implications for policy and practice are derived.