Foreign direct investment and industrialization in ASEAN countries

1987 ◽  
Vol 123 (1) ◽  
pp. 121-139 ◽  
Author(s):  
Ulrich Hiemenz
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Asean Countries

scholarly journals Intellectual Property and Foreign Direct Investment

2019 ◽  
Vol 14 (2) ◽  
pp. 26-32
Author(s):  
Nur Hayati Abd Rahman ◽  
Khairunnisa Abd Samad ◽  
Shahreena Daud ◽  
Zarinah Abu Yazid
Keyword(s):  
Foreign Direct Investment ◽  
Intellectual Property ◽  
Direct Investment ◽  
Random Effect ◽  
Digital Economy ◽  
Intellectual Property Protection ◽  
Annual Data ◽  
New Business ◽  
Asean Countries ◽  
High Level

With help from both domestic and international markets, ASEAN countries are able to catch-up withthe latest economic development if they can sustain high economic growth for a long-period of time. To doso, the resources available in countries such as capital and labors should fully be utilized up to theoptimum level. The capital itself can be in many forms such as investment. Since most of the ASEANcountries are categorized as developing countries, the reliance on foreign direct investment (FDI) as asource of growth is highly needed as it helps the economy to step on a higher stage of economic developmentvia the roles of foreign experts and technological transfer. In ensuring a higher level of investment, there isa need to ensure a high level of intellectual property protection since it assists in promoting invention,innovation and new business development. In opposite, lacking in protection might discourage foreigninvestors to invest in the countries, thus limiting the ability of the countries to grow further. Therefore, theaim of this paper is to examine whether strong intellectual property protection will really help in attractingmore foreign investors to invest in ASEAN-5 countries. Using annual data from 2007 to 2016, panel dataestimation using random effect is employed. It was found that the ASEAN-5 countries should strengthentheir intellectual property protection in order to stimulate higher foreign investments. Nevertheless, inbetween copyright and patents, copyrights protection gives significant effect to the FDI inflows relative tothe latter one. It indicates that the countries are slowly moving out from the production-based economy andcatching-up towards a digital economy. Keywords: ASEAN-5, foreign direct investment, intellectual property protection, digital economy, copyrights

scholarly journals Dynamic of Foreign Direct Investment (FDI) Relationship, Macroeconomic Stability and Return of Shares Index in Four Asen Countries

2021 ◽  
Vol 9 (1) ◽  
pp. 38-55
Author(s):  
Fisit Suharti ◽  
M. Zidny Nafi' Hasbi
Keyword(s):  
Foreign Direct Investment ◽  
Interest Rates ◽  
Capital Market ◽  
Direct Investment ◽  
Market Integration ◽  
Stock Index ◽  
Bounds Testing ◽  
Distributed Lag ◽  
Asean Countries

Southeast Asian countries are looking forward to capital market integration. The presence of this momentum requires stable economic conditions in each country and an attractive capital market. This momentum is also an opportunity for the Islamic capital market to be further developed in this region. This study aims to examine the effects of Foreign Direct Investment (FDI) and macroeconomic variables, namely economic growth, inflation, reference interest rates and exchange rates on the return of the Islamic stock index in four ASEAN countries, namely Indonesia, Malaysia, Thailand and Singapore. The research period since four quarter of 2006 until the first quarter of 2020. The method used in empirical evidence in this study is the Autoregressive Distributed Lag Bounds Testing Approach (ARDL). This study found a long-term co-integration relationship in all research object countries. In terms of long-term relationships and short-term dynamics, this study finds variations in yield and direction coefficients in 4 ASEAN countries. The speed of readjustment of balance in case of shocks, respectively, is 44.7%, 65.4%, 43.5% and 50.0% per month.

scholarly journals The Effect of Foreign Direct Investment and Innovation on High Technology Product Imports In Asean 6

2019 ◽  
pp. 1-9
Author(s):  
Roro Aprilia Putri Cahyani ◽  
Tony Irawan ◽  
Prof Widyastutik
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Technological Development ◽  
Panel Data Analysis ◽  
High Technology ◽  
Spillover Effects ◽  
Digital Products ◽  
Domestic Technology ◽  
Technology Products ◽  
Asean Countries

Current technological development changes the people's lifestyle becoming progressively modern. Technological development encourages the rapid digitalization that occurs in all countries. The incapability of a country to meet domestic demand for digital products that are closely related to high technology content drives the import of high technology products. On the other hand, the development of Foreign Direct Investment (FDI) is essential in order to support the development of domestic technology of a country due to its spillover effects. ASEAN 6 is a highly attractive for foreign investors as it has strategic location, large market share and abundant resources. This study examines the influence of FDI and innovation on imported high technology products in ASEAN 6. This research employed the panel data analysis from six ASEAN countries during the period of 2007 to 2016. The results of this study indicated that FDI and innovation have a positive effect on imports of high products technology in ASEAN 6.

scholarly journals FOREIGN DIRECT INVESTMENT IN ASEAN COUNTRIES, 1990-2012.

2015 ◽  
Vol 23 (4) ◽  
Author(s):  
PADMANABHA RAMACHANDRA BHATT
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Wald Test ◽  
Significant Variable ◽  
Vector Autoregression Model ◽  
Long Run ◽  
Equilibrium Relationship ◽  
Unit Increase ◽  
Asean Countries ◽  
Estimated Error

The objectives of the paper are to study foreign trade and investment dimensions of ASEAN and to study the role of FDI to the growth of exports. Vector autoregression model (VAR) is adopted to estimate the long run causal relationship between exports, foreign direct investment and GDP. The cointegration test result shows that there exists a long run equilibrium relationship between exports, FDI and GDP. It is found from the estimated Error Correction Model that FDI is a significant variable and the result indicates that 1 unit increase in FDI in ASEAN will lead to 1.1 units increase in exports. Wald Test indicates that there is a bilateral relationship between Exports and FDI but unilateral relationship between FDI and GDP and the direction is from FDI to GDP which means that FDI causes GDP.  

scholarly journals THE IMPACT OF FOREIGN DIRECT INVESTMENT ON CO2 EMISSIONS IN ASEAN COUNTRIES

2020 ◽  
Vol 10 (5) ◽  
pp. 584-592
Author(s):  
Rizky Eriandani ◽  
Saiful Anam ◽  
Dewi Prastiwi ◽  
Ni Nyoman Alit Triani
Keyword(s):  
Foreign Direct Investment ◽  
Co2 Emissions ◽  
Direct Investment ◽  
Asean Countries ◽  
The Impact

THE NEXUS BETWEEN ECONOMIC GROWTH, STOCK MARKET DEPTH, TRADE OPENNESS, AND FOREIGN DIRECT INVESTMENT: THE CASE OF ASEAN COUNTRIES

2019 ◽  
Vol 64 (03) ◽  
pp. 461-493 ◽  
Author(s):  
RUDRA P. PRADHAN ◽  
MAK B. ARVIN ◽  
JOHN H. HALL
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Stock Market ◽  
Mutual Fund ◽  
Direct Investment ◽  
Trade Openness ◽  
Market Depth ◽  
Long Run ◽  
Asean Countries ◽  
Tax Holidays

Many studies have investigated the causal relationship between economic growth and the depth in the stock market, between economic growth and trade openness, or between economic growth and foreign direct investment. Advancing on earlier work, this paper uses vector error-correction and cointegration techniques in order to establish whether there is a long-run equilibrium relationship between all four variables. We consider a sample of 25 ASEAN Regional Forum (ARF) countries which are studied over the period 1961–2012. Our analysis, which combines various strands of the literature, establishes the direction of causality between the variables. Policy recommendations include the encouragement of mutual fund investment by smaller investors to increase stock market depth as well as methods to increase foreign direct investment, such as tax holidays.

Hong Kong Firms in the ASEAN Region: Transnational Corporations and Foreign Direct Investment

1994 ◽  
Vol 26 (12) ◽  
pp. 1931-1956 ◽  
Author(s):  
W-C H Yeung
Keyword(s):  
Foreign Direct Investment ◽  
Hong Kong ◽  
Direct Investment ◽  
Secondary Data ◽  
Transnational Corporations ◽  
Equity Capital ◽  
Capital Inflows ◽  
Tertiary Sector ◽  
Secondary Data Sources ◽  
Asean Countries

Economic links between Hong Kong and the ASEAN (Association of South East Asian Nations) region are historically strong. In this paper, by means of extensive secondary data sources, some facets of these links in relation to the transnational operations of Hong Kong firms and their foreign direct investment (FDI) flows in ASEAN countries are examined. It is found that out of thirty leading Hong Kong transnational corporations (TNCs), nineteen have together more than forty-three operations in ASEAN. Hong Kong TNCs in the tertiary sector are particularly inclined to establish cross-border operations in the ASEAN region. Any explanation of the operations of these TNCs in ASEAN must take into consideration ongoing network relations embedded in peculiar historical contexts and geographical confines. In terms of equity capital inflows, Hong Kong FDI in the ASEAN region regained its momentum after 1985. Indonesia and Thailand are the most favoured destinations for Hong Kong FDI. In these two countries, Hong Kong FDI ranks, respectively, as the second and third largest foreign investment. Future studies need to address the issue of Hong Kong's uncertainty over the ‘1997’ question and of theory-building in international business.

scholarly journals FOREIGN DIRECT INVESTMENT LAW IN ASEAN COUNTRIES: PROSPECT FOR ASEAN ECONOMIC COMMUNITY

2019 ◽  
Vol 8 (1) ◽  
pp. 47
Author(s):  
Mohamad Hanapi Bin Mohamad
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Financial Integration ◽  
The Philippines ◽  
Asia Pacific ◽  
Economic Community ◽  
Real Convergence ◽  
Financial Infrastructure ◽  
Asean Countries ◽  
Asean Economic Community

<p>The development of ASEAN towards the establishment of ASEAN Economic Community (AEC) at the end of 2015 has brought into sharp focus on the issue of economic and financial integration in the region. The ASEAN region has been the largest recipient of FDI, relative to GDP in Asia Pacific. Between 1952 and 2012, Singapore accounts for more than half of total FDI to the whole region. Thailand ranks the second with a 13 percent share, followed by Indonesia, Malaysia, Vietnam and the Philippines which account between 13 to 8 percent.  Foreign direct investment into ASEAN recovered from the world economic crisis and regained its 2007 level of USD 76 thousand million in 2010. ASEAN Dialogue Partners comprising EU, USA and Japan accounted USD 64 thousand million, while the share of Intra-ASEAN in this total was 16% which indicates the progress of ASEAN integration. Theories of economic integration and market liberalization have been used to explain the role of foreign direct investment in developing countries. This paper aims to examine ASEAN’s financial integration prospects. ASEAN integration could accelerate in the years ahead with enhancing financial infrastructure and reliable flexible policy frameworks. On the long term closer engagement among member countries could potentially increase real incomes and accelerate real convergence.</p>

scholarly journals The Relationship between International Trade and Economic Growth

2019 ◽  
Vol 1 (02) ◽  
pp. 112-123
Author(s):  
Putri Dewi Purnama ◽  
Ming Hung Yao
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
International Trade ◽  
Exchange Rate ◽  
Direct Investment ◽  
Positive Impact ◽  
The Exchange Rate ◽  
Asean Countries ◽  
The Relationship

The aim of this study is to find the relationship between international trade and economic growth in ASEAN countries. Three independent variables used to measure the economic growth include international trade, the exchange rate, and foreign direct investment. This study employs a pedroni panel cointegration test to examine the data from 2004 to 2015. The results show that there is a long term cointegrated relationship between international trade and economic growth in the ASEAN countries. International trade and foreign direct investment also have a long term, positive impact on economic growth. Meanwhile, the exchange rate also has a long term, negative influence on the economic growth. In addition, there is an indirect relationship and bidirectional causalities between the GDP and international trade, as well as between the GDP and the exchange rate. On the other hand, there is a direct relationship and a bidirectional causality between international trade and the exchange rate. The FDI leads GDP, international trade, and exchange rates. Our results suggest that international trade must be supported by government policies that aim to enhance the financing of new investment for economic growth.

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