Title: Influence of a knowledge-based economy on foreign direct investment in regional comprehensive economic partnership economies

Authors: Nathapornpan Piyaareekul Uttama

Addresses: Economics Program, School of Management, Mae Fah Luang University, Thailand

Abstract: This study examines the influence of a knowledge-based economy on foreign direct investment (FDI) among countries in the regional comprehensive economic partnership (RCEP). The knowledge-based economy is the focus of this study, with particular attention paid to digital technology, innovation, and advanced industrial capacities. Panel data from ten RCEP member states from 2008 to 2019 and the Lasso-Poisson pseudo-maximum likelihood method are used in the estimation. The results show that technological skills, similarities in technological skills, R&D, high-tech and innovative industrial activities, and access to finance between the recipient and investing countries in the RCEP positively influence FDI flows. Additionally, the economic complexity disparity across RCEP countries positively influences their FDI activities. Based on these findings, RCEP nations should accelerate their efforts to advance digital technology and innovation, increase the economic complexity of production, and promote knowledge-based economic integration.

Keywords: knowledge-based economy; digital technology and innovation; economic complexity; foreign direct investment; FDI; regional comprehensive economic partnership; RCEP.

DOI: 10.1504/IJTLID.2024.137482

International Journal of Technological Learning, Innovation and Development, 2024 Vol.15 No.3, pp.243 - 269

Received: 12 Nov 2022
Accepted: 05 Jun 2023
Published online: 20 Mar 2024 *