The determinants of foreign direct investment in ASEAN: New evidence from financial integration factor

Business and Economic Horizons Pub Date : 2019-01-01 DOI:10.15208/BEH.2019.18

Ho Thanh Tri, V. T. Nga, V.H.T. Duong

引用次数: 5

Abstract

This paper examines the impact of financial integration and other variables on foreign direct investment capital inflows in ASEAN3 (Cambodia, Laos, and Vietnam) and ASEAN5 (Indonesia, Malaysia, Philippines, Thailand, Singapore). Other variables are the gross domestic product, interest rate, infrastructure facility, labor cost, and trade openness. This paper uses the panel ordinary least square estimation with the method of first differencing for the period between 1996 and 2016. The authors divide ASEAN member countries into two groups by the level of economic development. The findings indicate that the coefficient of financial integration is positive and significant at 1 % level of significance on foreign direct investment capital inflows. The empirical results also support the hypothesis that foreign direct investment in ASEAN is positively correlated to market size, infrastructure facilities, and negatively correlated to labor cost as well as trade openness in ASEAN3.

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东盟外商直接投资的决定因素:来自金融一体化因素的新证据

本文考察了金融一体化和其他变量对东盟3(柬埔寨、老挝和越南)和东盟5(印度尼西亚、马来西亚、菲律宾、泰国和新加坡)外国直接投资资本流入的影响。其他变量包括国内生产总值、利率、基础设施、劳动力成本和贸易开放程度。本文采用面板普通最小二乘估计，采用一阶差分法对1996 - 2016年期间进行估计。作者根据经济发展水平将东盟成员国分为两类。研究结果表明，金融一体化系数在1%的显著水平上对外国直接投资资本流入具有正显著性。实证结果也支持东盟的外国直接投资与东盟的市场规模、基础设施呈正相关，与东盟的劳动力成本和贸易开放程度负相关的假设。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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Business and Economic Horizons ECONOMICS-

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期刊介绍： The Business and Economic Horizons (BEH) is an international peer-reviewed journal that publishes high quality theoretical, empirical, and review papers covering the broad spectrum of research in areas of economics, business, management, and finance. The journal aim is to bridge the gap between the theory and the observed data in these constantly developing domains. BEH Editorial Board welcomes the high-quality original research articles and review papers that verify the well-grounded and the emerging theories by employing the econometric, statistical methods or other relevant empirical methods in theoretical and applied economic analysis. BEH does not discriminate articles utilizing the non-mainstream approaches such as experimental research, institutional analysis, other variations of heterodox and developmental economic studies. Therefore, the submissions in any field of micro- and macroeconomics, business ethics, economic policy or finance are appropriate for this journal. We hope, the provided contributions will help to understand the contemporary challenges faced by the private and public sector and will establish an international forum of empirical research.