DETERMINANTS OF FDI INFLOWS IN SIX ASEAN COUNTRIES IN 1998-2016

Abstract

Investment is an important element of the growth and the development of economic. Foreign Direct
Investment (FDI) is one of the investment sources as an alternative to the Domestic Investment that
might be difficult to be fulfilled by a country itself. The increased numbers of FDI inflows to
ASEAN countries turns out were not evenly distributed to each country. This research is important
to determine the development and determinants of FDI inflows in six ASEAN countries in the period
of 1998-2016. From the panel data regression analysis, it can be concluded that the variable levels
of corruption negatively affect the FDI inflows, while the level of economic freedom and income
per capita has a positive effect on FDI inflows in six ASEAN countries in 1998-2016.