An Empirical Study On Direct Investment's Influence Factors In Liaoning Province From South Korea Under The Background Of China-ROK FTA

China and South Korea are two important economies in Northeast Asian.Since the establishment of diplomatic relations in 1992,the economic and trade cooperation between two countries has been gradually deepened.They both have made rapid economic development,and now have become important economic and trade cooperation partners.China-ROK Free Trade Agreement was signed officially on June 1st 2015 after more than a decade of difficult negotiations between two countries,which had been effective formally and the first tax cut on December 20 th 2015,the second tax cut on January 1st 2016 and the third tax cut on January 1st 2017.Up to now,China-ROK FTA is a free trade agreement that has the most extensive coverage,the most involved areas,the largest trade volume and the highest comprehensive level in China FTA that has signed externally.Korean direct investment in China dates from 1988,and started late but developed rapidly.Now South Korea has been the fifth largest source of foreign direct investment in China.Liaoning Province is located in the center of Northeast Asian region,and has geographical advantages,resource advantages and industrial advantages throughout the Northeast Asian regional economic cooperation.Since the establishment of diplomatic relations between two countries,Liaoning and South Korea have always maintained close economic and trade relations.However,the economic level of Liaoning has shown a downward trend due to the impact of global economic depth adjustment in recent years so that South Korea's direct investment in Liaoning is a sharp drop and Liaoning old industrial base also starts to face the great challenge of accepting a new round of international industry transfer.Therefore,Liaoning should firmly grasp the historical opportunity of China-ROK FTA,speed up technical and economic cooperation with South Korea and the degree of opening to outside world and expand the field of regional economic cooperation.And it can promote South Korea's direct investment development process in Liaoning.This paper is based on the relevant theories of international direct investment.Firstly,it elaborates China-South Korea's and Liaoning-South Korea's development status of direct investment using quantitiative analysis and direct investment bond index,and analyses China-ROK FTA's influence factors based on the progress overview after signing China-ROK FTA.Then it makes an empirical study on the influence factors of direct investment in Liaoning Province from South Korea.Using GRAP(Gray Relational Analysis Grade)is to sort the influence factors of FDI and then establishing Time Series Regression Model is to analyze how every factor will affect for FDI.It is found that net export has the greatest impact on FDI,while exchange rate has the least impact and no significant influence on FDI.In turn it illuminates the opportunities and challenges brought by China-ROK FTA to Liaoning Province.At last,the relevant policy recommendations are put forward.