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Foreign Direct Investment Factors In Asean Countries

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  • Euphrasia Susy SUHENDRA

    (PhD, Professor, Indonezia)

Abstract

FDI is very important for the development of a country, especially for developing countries. The experience of newly industrialized countries (NICs) shows that FDI has played an important role in their economic development. In the age of globalization with cross-border flow of capital among nations, FDI becomes a key solution to reducing development gaps among nations. This research intends to identify the direct and indirect effect of ICT driving factor through openness on foreign direct investment and the direct effect of GDP Growth, GFCF on foreign direct investment. The objects of this research are ASEAN countries, while the variables in this research are macroeconomic indicators, ICT driving factor and foreign direct investment. The results are Gross domestic product growth, Gross fixed capital formation, Accessibility of digital content and Openness which affects directly on foreign direct investment, while other research variables have no significant influence. The only variable, Government Prioritization of ICT, affects foreign direct investment through openness.

Suggested Citation

  • Euphrasia Susy SUHENDRA, 2016. "Foreign Direct Investment Factors In Asean Countries," Economy and Sociology, The Journal Economy and Sociology, issue 4, pages 8-15.
    • Handle: RePEc:aat:journl:y:2016:i:4:p:8-15
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