Impact of economic integration on foreign direct investment into ASEAN5
Document Type
Article
Publication Date
1-1-2010
Abstract
The paper aims to analyse the relationship between economic integration and FDI for ASEAN5, namely Indonesia, Malaysia, Philippines, Singapore and Thailand through panel analysis. In order to compete, in the face of the two regional growing giants, China and India, it is crucial to identify and understand the determinants of FDI flowing into the regional trade area (RTA), in particular, whether economic integration to form, a larger entity, does contribute to FDI inflow. FDI inflow into ASEAN5 was thought to be profitseeking in nature. This study finds that FDI inflow into ASEAN5 is more market-seeking. This may result from the growing internal markets of ASEAN5.
Keywords
Economic integration, Foreign direct investment, Panel analysis
Divisions
FacultyofEconomicsAdministration
Publication Title
Malaysian Journal of Economic Studies
Volume
47
Issue
1
Publisher
Malaysian Economic Association
Publisher Location
KHADAR BLDG, NEAR SHIFA HOSP, ADIRAMPATTINAM, TAMIL NADU, 614 701, INDIA