Determinants of FDI attractiveness: Evidence from ASEAN-7 countries

The article examines the impact of tax burden, institutional quality, and some macroeconomic determinants on attracting inflows of FDI in ASEAN-7. We estimate the panel data sample with pooling, a seemingly unrelated regression (SUR), and fixed-effects models. The empirical results indicate that eco...

Full description

Saved in:
Bibliographic Details
Published in:Cogent social sciences 2021-01, Vol.7 (1)
Main Authors: Dang, Van Cuong, Nguyen, Quang Khai
Format: Article
Language:English
Subjects:
ASEAN
Banking
Corruption
Developing countries
Economic development
Economic growth
FDI attractiveness
Foreign investment
Inflation
institutional quality
International relations
LDCs
macroeconomic determinants
Macroeconomics
Mineral resources
Panel data
Policy making
Political institutions
Population growth
Raw materials
Social sciences
tax burden
Tax rates
Taxation
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:The article examines the impact of tax burden, institutional quality, and some macroeconomic determinants on attracting inflows of FDI in ASEAN-7. We estimate the panel data sample with pooling, a seemingly unrelated regression (SUR), and fixed-effects models. The empirical results indicate that economic growth, tax burden, quality of economic institution, and inflation are key drivers that significantly attract FDI while population growth and quality of political institution are negatively associated with FDI inflow. These findings may connect to the price transferring and demand-following hypothesis. Our results provide some important implications for policy-makers in ASEAN developing countries that are enhancing FDI inflow in the future.
ISSN:2331-1886
2331-1886
DOI:10.1080/23311886.2021.2004676