DETERMINANTS OF FOREIGN DIRECT INVESTMENT FLOWS IN ASEAN COUNTRIES

Abstract

Foreign direct investment (FDI) plays an important role in spurring economic growth and increasing employment opportunities. Therefore, it is very important to make a study regarding the factors that influence FDI inflows in the Southeast Asia (ASEAN) region. In addition, existing research has left certain questions unanswered, including whether open trade and corruption serve as a catalyst or barrier to FDI inflows. Based on previous empirical studies, it was found that the results of the decision were still not conclusive enough to be used as a reference by interested parties such as firms, shareholders, investors and governments. However, studies like this in ASEAN countries are still lacking. This study uses the Panel Autoregressive Distributed Lag (ARDL) methodology to analyze data from 2000 to 2021.