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...

Full description

Saved in:
Bibliographic Details
Main Authors: Hong Hiep Hoang, Duc Hung Bui
Format: Article
Language:English
Published: Growing Science 2015-02-01
Series:Management Science Letters
Subjects:
Online Access:http://www.growingscience.com/msl/Vol5/msl_2014_339.pdf
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1850182049610072064
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