Regional Integration and Foreign Investment: The Case of Asean Countries
Emmanuel O. Nwosu,
Anthony Orji (),
Nathaniel Urama () and
Joseph Amuka ()
Additional contact information
Emmanuel O. Nwosu: Department of Economics, University of Nigeria, Nsukka
Asian Economic and Financial Review, 2013, vol. 3, issue 12, 1670-1680
The importance of regional integration in stimulating foreign direct investment cannot be overemphasized. With a special focus on the ASEAN countries, this research paper investigates the role of regional integration in attracting foreign direct investment. We bring a novelty to this paper by dividing foreign direct investment into Inter-and Intra-ASEAN to see if both are determined by the same set of factors. If economic integration drives intra-ASEAN FDI we would expect such FDI to be unrelated to macroeconomic fundamentals in each country, while we would expect Extra-ASEAN FDI to be determined by macroeconomic fundamentals. We employed panel data model in the analyses and the findings show that FDI from rest of the world are determined by macroeconomic fundamentals especially market size (GDP) and exchange rate, while inter-ASEAN FDI is not significantly related to macroeconomic fundamentals but depends on previous investments in the region. This implies most investments in ASEAN from ASEAN are motivated by economic integration.
Keywords: Economic integration; Foreign investment; Panel data; Macroeconomic (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:asi:aeafrj:2013:p:1670-1680
Access Statistics for this article
Asian Economic and Financial Review is currently edited by Dr. Qazi Muhammad Adnan Hye
More articles in Asian Economic and Financial Review from Asian Economic and Social Society 2637 E Atlantic Blvd #43110 Pompano Beach, FL 33062, USA.
Bibliographic data for series maintained by Chan Hoi Yan ().