Inward foreign investment boosts productivity in Korean industries with lower tariffs.
The study looked at how foreign investment affected productivity in Korean industries from 2000 to 2016. They found that overall, foreign investment didn't have a significant impact on productivity. However, industries with lower tariffs saw a boost in productivity from foreign investment. Capital intensity didn't play a role in this relationship. The study suggests that policies focusing on trade liberalization and redistributing production factors would be more beneficial than just increasing capital.