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FDI-trade nexus: empirical analysis on ASEAN-5

Author

Listed:
  • Kueh, Jerome Swee-Hui
  • Puah, Chin-Hong
  • Lau, Evan
  • Abu Mansor, Shazali

Abstract

This paper investigates the dynamic linkages between FDI and trade of ASEAN-5 countries using the Autoregressive Distributed Lag (ARDL) bounds testing approach. Empirical results suggest that FDI and import are complement to each other in long run but import tends to substitute FDI in short run. Conversely, export tends to substitute FDI in long run, however, complementary linkage was found between FDI and export in short run.

Suggested Citation

  • Kueh, Jerome Swee-Hui & Puah, Chin-Hong & Lau, Evan & Abu Mansor, Shazali, 2007. "FDI-trade nexus: empirical analysis on ASEAN-5," MPRA Paper 5220, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:5220
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    References listed on IDEAS

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    Cited by:

    1. Mohammad Razib Hossain, 2021. "Inward foreign direct investment in Bangladesh: Do we need to rethink about some of the macro-level quantitative determinants?," SN Business & Economics, Springer, vol. 1(3), pages 1-23, March.
    2. Liew, Siew-Ling, 2016. "Determinants of Foreign Direct Investment," MPRA Paper 70447, University Library of Munich, Germany.
    3. Murman Budijanto & Bagus Rachman, 2010. "Foreign direct investment and one digit standard international trade classicification," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 2(3), pages 265-276, April.
    4. Liew, Siew-Ling, 2016. "Review on Determinants of Capital Flight," MPRA Paper 70445, University Library of Munich, Germany.

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    More about this item

    Keywords

    FDI; Trade; Autoregressive Distributed Lag (ARDL);
    All these keywords.

    JEL classification:

    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

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