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AIA, AFTA and Domestic Private Investment: Evidence from Malaysia

Author

Listed:
  • Masron, tajul

    (School of Management Universiti Sains Malaysia 11800 Pulau Pinang MALAYSIA)

  • Mohd Nor, Abu Hassan Shaari

    (Pusat Pengajian Ekonomi Fakulti Ekonomi dan Pengurusan Universiti Kebangsaan Malaysia 43600 Bangi Selangor MALAYSIA)

Abstract

The ASEAN Free Trade Area (AFTA) was proposed in 1992 and followed by the introduction of the ASEAN Investment Area (AIA) in 1998. Both are meant to promote regional economic prosperity through improvements in regional trade and investment. Unfortunately, to date, there is no clear sign that either AFTA or the AIA can really trigger regional economic activity and, therefore, spur regional economic development. The main point often neglected in literature concerning the implications of AFTA and AIA on regional economic development is the role and development of domestic private investment (DPI). In other words, AFTA and AIA will only result in positive and sustainable economic impacts on regional economic development if such developments followed or supported by the development of domestic private investment in each ASEAN member country. Hence, this study aims to investigate the implication of AFTA and AIA on Malaysian DPI.

Suggested Citation

  • Masron, tajul & Mohd Nor, Abu Hassan Shaari, 2012. "AIA, AFTA and Domestic Private Investment: Evidence from Malaysia," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 46(2), pages 93-99.
    • Handle: RePEc:ukm:jlekon:v:46:y:2012:i:2:p:93-99
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    References listed on IDEAS

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