An Analysis of Institutional and Economic Determinants of Foreign Direct Investment in Nine ASEAN Countries (2013–2019

Abstract

This study aims to explore the key factors influencing Foreign Direct Investment (FDI) in nine ASEAN countries between 2013 and 2019, using panel data analysis. The research focuses on 9 ASEAN Emerging Markets countries, with data series spanning the period from 2013 to 2019. The variables used in this study are the variables of the Political Stability Index, the E-Government Development Index, the Corruption Perception Index, the Democracy Index, the Crime Index, GDP per capita, and FDI. The results of the study show that the political stability variable has a negative and insignificant influence. Additionally, e-government has a positive and significant impact on foreign direct investment in 9 ASEAN countries. Corruption has a negative and significant effect on foreign direct investment in 9 ASEAN countries. Moreover, the democracy index has a negative and statistically insignificant influence. The crime index has a positive and significant effect. Finally, GDP per capita has a negative and insignificant effect on foreign direct investment in nine ASEAN countries.