Exploring determinants of foreign direct investment inflows into ASEAN-5

• Main Authors: Chua, Mei Ting, Brahanya Udhayakumar
• Other Authors: Shahidur Rahman
• Format: Final Year Project
• Published: 2008
• Subjects: DRNTU::Business::Finance::International finance::Foreign direct investment
• Online Access: http://hdl.handle.net/10356/9976
• Institution: Nanyang Technological University

This paper analyses the economic motives behind Foreign Direct Investment (FDI) inflows into the ASEAN-5 by encompassing a wide range of determinants. Using these determinants, we uncover unique models for each of the ASEAN-5 countries. In essence, it not only models and contrasts the different intentions behind FDI inflows for individual countries in ASEAN-5, but also uncovers key determinants governing the motives. We do so by utilizing correlation analysis and econometric modeling. Policy implications and possible future economic co-operation within ASEAN-5 based on our findings are also discussed. The results in our study show market-size, trade barriers, cost factors, exchange rate volatility and Information and Communication Technology (ICT) infrastructure to be significant determinants that influence the inflow of FDI for ASEAN-5.