Growth and Reform in the Korean Economy Proceedings of the Conference on Growth and Reform in Korea - Implications for Australia

Author: 
Jung Soo Seo
Jong-Soon Kang
Heejin Lee
Sangjo Oh
Russell D. Lansbury
Nick Wailes
Eugene Yun
Description: 
PACIFIC ECONOMIC PAPERS NO. 348, 2005
JEL codes: 
Abstract: 
This paper explores the issue of outward foreign direct investment (OFDI) exporting Korean jobs during 9862003. In the midst of an overall increase in employment in Korea, there was a temporally coincident increase in OFDI and a decline in manufacturing employment. An examination of the employment structure and capital stock changes suggests that there had been a structural transition in the Korean economy from a capital intensive to a knowledge intensive base. Simple regression analyses demonstrated that the OFDI from Korea had a checking effect on rising unemployment. As such, the increase in unemployment can be attributed to the trends of the time and the East Asian financial crisis.