A study on the effects of foreign direct investments, credit provided by banking sector, deposit interest rates and lending rates to the gross domestic product growth of the original ASEAN countries from the years 2002-2011

• Main Authors: Cerbo, Bienvenido Gerard P., III, Garcia, Jan Keith I., Panganiban, Julius Bernard R.
• Format: text
• Language: English
• Published: Animo Repository 2013
• Subjects: Investments, Foreign > Southeast Asia; Interest rates > Souheast Asia; Gross domestic product > Southeast Asia; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/18530
• Institution: De La Salle University

The financial sector in any country plays a vital role in the development of an economy. This paper aims to determine if the activities made by the financial sector, mainly the banking sector, would truly have an effect in the GDP growth of the original countries in the ASEAN region. The researchers are confident that the results that would be garnered would be very beneficial to the ASEAN region. This study will not only be able to see if the financial sector of a country greatly affects its overall growth with regard to GDP growth, but it will also lead the researchers to obtain data to analytically compare which ASEAN member country has a more competitive financial sector against neighboring countries. The researchers will use an ordinary least squares regression model to gather information needed for the study. Based on the result, the researchers are able to find that foreign direct investment and deposit interest rates were significant factors in promoting GDP growth because of new jobs being given to local individuals and new technological advancements being brought to the country. Deposit interest rates significantly affect the GDP growth because they enable financial intermediaries to obtain funds to use in productive ways.