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자료유형
학술저널
저자정보
저널정보
한국유럽학회 유럽연구 유럽연구 제13권
발행연도
2001.6
수록면
163 - 180 (18page)

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Foreign investment in Korean stock market reflects a evaluation of the Korean capital market and economic situation. In particular, foreign investment has critically affected Korean capital market and economy after the recent financial crisis in Korea. This paper studies the changes of foreign investment Korean stock market after asia financial crises and attempts to analyze empirically the determinants of foreign investment in Korean stockmarket. In the construction of the model domestic and overseas variables are considered. Domestic variables are including the leading composite index, yields on corporate bonds, Korean stock composite index, commodity balance, and won-dollar exchange rate. The overseas variables are including yen-dollar exchange rate, LIBOR and NASDAQ index. The empirical results of regression analysis show that the devaluation of won and the rise in Korean stock composite index encourage the foreign investors to buy the Korean stock. And, the appreciation of yen and the falling of LIBOR positively affect the foreign investment. In particular, they show that the foreign inventors increase net buying when the NASDAQ index is up. We can also find that the overseas variables, in comparison with the domestic variables, affect the foreign investment in Korean stock much more after the Asia crises than before. This paper implies that the authority should stabilize the domestic financial market and avoid the excess appreciation of the won in order to encourage the foreign investment in Korean stock market. And the movements of the international financial markets, such as yen-dollar exchange rate, LIBOR and NASDAQ, should be cautiously monitered.

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UCI(KEPA) : I410-ECN-0101-2018-030-001515501