The Determinant of Foreign Direct Investment in ASEAN: A Semi-Gravity Approach

Ismail, Normaz Wana

doi:10.1007/s11300-009-0103-0

Cited by 31 publications

(23 citation statements)

References 22 publications

(26 reference statements)

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“…Obviously, the increase of the real interest rates encourage capital costs to increase, it also means that the financial risks exist, so it will limit FDI flows into the region. The coefficient of inflation is negative, as expected, but not statistically significant, this finding is also consistent with the conclusion of Ismail (2009). As expected, the coefficient of financial development is positive but not statistically significant.…”

Section: Regression Methodology and Resultssupporting

confidence: 88%

“…Similarly, the coefficient of trade openness is positive and statistically significant. Studies Ismail (2009), Masron and Abdullah (2010) also confirmed the positive role of trade openness to attract FDI flows into the region. As expected, the coefficient of the political stability is positive and statistically significant.…”

Section: Regression Methodology and Resultsmentioning

confidence: 86%

“…The coefficient of the infrastructure development is positive and statistically significant. Thus, as the conclusion of Ismail (2009), the quality of infrastructure plays an important role in attracting FDI flows into ASEAN. Similarly, the coefficient of trade openness is positive and statistically significant.…”

Section: Regression Methodology and Resultsmentioning

confidence: 99%

“…The analysis also explains why foreign capital flows contribute to print for a regional integration process a higher vertical degree in ASEAN than in MERCOSUR. Ismail (2009) used a semi gravity model to identify the determinants of FDI in ASEAN countries covering the period from 1995 to 2003. The dataset covers 18 source countries from various investors in the world and 9 host countries, which include all ASEAN members except Cambodia.…”

Section: Literature Reviewmentioning

confidence: 99%

See 3 more Smart Citations

Determinants of foreign direct investment in ASEAN: A panel approach

Hoang¹,

Bui²

2015

10.5267/j.msl

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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.Growing Science Ltd. All rights reserved. 5

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Section: Regression Methodology and Resultssupporting

confidence: 88%

Section: Regression Methodology and Resultsmentioning

confidence: 86%

Section: Regression Methodology and Resultsmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

See 2 more Smart Citations

Determinants of foreign direct investment in ASEAN: A panel approach

Hoang¹,

Bui²

2015

10.5267/j.msl

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“…Hattari and Rajan (2009) showed that shorter distance between the countries, real sector variables, financial variables, and quality of institutions promote FDI. Ismail (2009) showed that shorter distance, common language, and land border promote FDI. Mitze, Alecke, and Untiedt (2010) showed that there are substitutive relationships between trade and outward FDI in Germany.…”

Section: Fdi and The Channel For International Transmissionmentioning

confidence: 99%

Do FDI and TPP without the United States Promote Stability in TPP Countries?

Kurihara¹

2016

JEDS

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This paper analyzes the relationship between foreign direct investment (FDI) and cross-country business cycles in Trans-Pacific Partnership (TPP) member countries. The U.S. President Trump decided to withdraw from TPP, and it is unclear whether or not this decision is beneficial for the U.S. economy. However, this paper focuses on FDI and examines whether the TPP without the United States would be beneficial for the member countries. Concretely, 11 or 12 member countries' business cycles are taken into consideration for empirical analysis. Empirical studies show that FDI is an important channel through which economies may affect each other in a significant fashion, especially for the 12 economies of the TPP member countries. FDI will be an important key element in the success of the freer market. If the United States withdraws from the TPP, there would be a serious loss for the remaining 11 countries. There would also be a loss for the U.S. economy.

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