Title: Economic, political and institutional determinants of foreign direct investment inflow in emerging and developing Asia

Authors: Anil Kumar Goyal

Addresses: Maharaja Agrasen Institute of Management Studies, Sec. 22, Rohini, New Delhi 110085, India

Abstract: This study investigates the role of economic, political and institutional factors in attracting foreign direct investment (FDI) inflow in the top five host economies of emerging and developing Asia consisting of China, Hong Kong, Singapore, India, and Vietnam for the period 2006-2016. The study is based on determinants, identified from literature review on the basis of their relevance and significance, of FDI inflow. The study uses fixed effects panel regression in order to measures the significance of determinants of FDI inflows in the top five host economies of developing Asia. The findings of panel regression model reveal that most of the economic variables seem to be statistically significant and determinants FDI inflow as compared to institutional and political variables of FDI. After imputing variables into economic, political and institutional, multiple regression estimates indicate that the coefficients of economic and institutional factors are significant as determinants of FDI inflow in developing Asia.

Keywords: determinants of FDI inflow; economic; political and institutional factors; emerging Asia; developing Asia; FDI host economies; China; Hong Kong; Singapore; India; Vietnam; panel data; fixed effect; multiple regression.

DOI: 10.1504/IJIE.2022.119620

International Journal of Intelligent Enterprise, 2022 Vol.9 No.1, pp.59 - 77

Received: 29 Jun 2018
Accepted: 14 Jan 2019
Published online: 13 Dec 2021 *

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