The determinants of foreign direct investment: focused in Asia developing countries / Nursyaleza A Ramlee

The purpose of this research is to determine the determinants of foreign direct investment focused in Asia developing countries. Besides, the research paper also examines the determinants of Foreign Direct Investment (FDI) and measure the significance of the factors that determine the Foreign Direct Investment. Dependent variable used in this research is foreign direct investment and the independent variables are market size, market potential, inflation, trade openness, financial stability, interest rate and exchange rate. Using the secondary data method, a set of panel data consists of the data from the year of 2007 until 2015 for the total of 23 countries under the region of Asia developing countries. The data were collected from World Development Indicators database and being analyzed by the panel least square regression. The E-Views program is used as the estimation tool to run the analysis of the data used in this research paper. The findings signify that among those variables, all factors significantly determine the Foreign Direct Investment except for inflation. Inflation inversely insignificant correlated with foreign direct investment.