Determinants of foreign direct investment in ASEAN: A panel approach
This paper analyzes the factors of FDI inflows in ASEAN countries over the period 1991 to 2009. The results indicate that the market size, trade openness, quality infrastructure, human capital, labor productivity are the main factors that have positive impacts on FDI inflows. Additionally, exchange...
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| Format: | Article |
| Language: | English |
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Growing Science
2015-02-01
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| Series: | Management Science Letters |
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| Online Access: | http://www.growingscience.com/msl/Vol5/msl_2014_339.pdf |
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| author | Hong Hiep Hoang Duc Hung Bui |
| author_facet | Hong Hiep Hoang Duc Hung Bui |
| author_sort | Hong Hiep Hoang |
| collection | DOAJ |
| description | This paper analyzes the factors of FDI inflows in ASEAN countries over the period 1991 to 2009. The results indicate that the market size, trade openness, quality infrastructure, human capital, labor productivity are the main factors that have positive impacts on FDI inflows. Additionally, exchange rate policy, real interest rate, political risk and corruption also affect FDI inflows. Surprisingly, the cheap labor does not help to attract FDI to the region, because foreign investors are particularly interested in labor productivity. This study also shows that the Asian financial crisis in 1997 affected the amount of FDI inflows, but not on the nature of FDI inflows in the region. |
| format | Article |
| id | doaj-art-441d848b22224935a1d6ea238071f321 |
| institution | OA Journals |
| issn | 1923-2934 1923-9343 |
| language | English |
| publishDate | 2015-02-01 |
| publisher | Growing Science |
| record_format | Article |
| series | Management Science Letters |
| spelling | doaj-art-441d848b22224935a1d6ea238071f3212025-08-20T02:17:45ZengGrowing ScienceManagement Science Letters1923-29341923-93432015-02-015221322210.5267/j.msl.2014.12.015Determinants of foreign direct investment in ASEAN: A panel approachHong Hiep HoangDuc Hung BuiThis paper analyzes the factors of FDI inflows in ASEAN countries over the period 1991 to 2009. The results indicate that the market size, trade openness, quality infrastructure, human capital, labor productivity are the main factors that have positive impacts on FDI inflows. Additionally, exchange rate policy, real interest rate, political risk and corruption also affect FDI inflows. Surprisingly, the cheap labor does not help to attract FDI to the region, because foreign investors are particularly interested in labor productivity. This study also shows that the Asian financial crisis in 1997 affected the amount of FDI inflows, but not on the nature of FDI inflows in the region.http://www.growingscience.com/msl/Vol5/msl_2014_339.pdfFDIASEANpanelDeterminantsFGLS |
| spellingShingle | Hong Hiep Hoang Duc Hung Bui Determinants of foreign direct investment in ASEAN: A panel approach Management Science Letters FDI ASEAN panel Determinants FGLS |
| title | Determinants of foreign direct investment in ASEAN: A panel approach |
| title_full | Determinants of foreign direct investment in ASEAN: A panel approach |
| title_fullStr | Determinants of foreign direct investment in ASEAN: A panel approach |
| title_full_unstemmed | Determinants of foreign direct investment in ASEAN: A panel approach |
| title_short | Determinants of foreign direct investment in ASEAN: A panel approach |
| title_sort | determinants of foreign direct investment in asean a panel approach |
| topic | FDI ASEAN panel Determinants FGLS |
| url | http://www.growingscience.com/msl/Vol5/msl_2014_339.pdf |
| work_keys_str_mv | AT honghiephoang determinantsofforeigndirectinvestmentinaseanapanelapproach AT duchungbui determinantsofforeigndirectinvestmentinaseanapanelapproach |