Determinants of foreign direct investment (FDI) in developing Asian countries / Muhd. Izzat Safwan Mohd. Shafari

Foreign direct investment is an important source for economic growth in any countries. Asia has been the largest recipient of foreign direct investment and therefore the most growing economy in the world. A lot of previous studies analyse regional determinants of the foreign direct investment theory that was proposed by John Henry Dunning in the twentieth century. This study focuses on applying method made by several past studies for a wider scope that is for the developing Asian countries over the span of16 years. This study uses random effect model where the variables which the statistically significant variables affect the foreign direct investment are gross domestic product and trade openness while political stability and absence of terrorism and violence, official exchange rates, inflation rate, loan of official development assistance, and control of corruption, don’t.