FOREIGN DIRECT INVESTMENT IN SOUTHEAST ASIA: DETERMINANTS AND SPATIAL DISTRIBUTION

Hoang Hiep

No 30, Working Papers from Development and Policies Research Center (DEPOCEN), Vietnam

Abstract: This paper analyzes the factors of FDI inflows to countries in Southeast Asia over the period 1991 to 2009. The results indicate that the market size, openness of the economy, quality infrastructure, human capital, labor productivity are the main factors that have a positive impact on FDI flows. Additionally, exchange rate policy, real interest rates, political risk and institutional quality also affect FDI flows. 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 showed that the Asian financial crisis in 1997 affects the amount of FDI inflows, but not on the nature of FDI inflows in the region.

Keywords: Foreign direct investment; ASEAN; panel; determinants (search for similar items in EconPapers)
JEL-codes: E22 F21 F23 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://depocenwp.org/modules/download/index.php?id=146 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:dpc:wpaper:3012

Access Statistics for this paper

More papers in Working Papers from Development and Policies Research Center (DEPOCEN), Vietnam Contact information at EDIRC.
Bibliographic data for series maintained by Doan Quang Hung ().