Foreign Direct Investment Volatility And Economic Growth In Asean-Five Countries

Choong, Chee-Keong and Liew, Venus Khim-Sen and Chan, Sok-Gee and Ch’ng, Huck-Khoon (2011) Foreign Direct Investment Volatility And Economic Growth In Asean-Five Countries. International Journal of Academic Research in Business and Social Sciences, 3 (4). ISSN 2222-6990


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This study examines the role of foreign direct investment (FDI) volatility as a source of variability in five major ASEAN economies. Using bounds testing approach, we show that while FDI has positive and significant effect in all the ASEAN economies considered, its volatility retards long-run economic growth in Indonesia, Malaysia, the Philippines and Thailand. Moreover, FDI volatility can be welfare reducing even after controlling for other country-specific growth correlates. This finding is robust to different measures of FDI volatility.

Item Type: Article
Uncontrolled Keywords: Foreign direct investment, economic growth, volatility, bounds test, unimas, university, universiti, Borneo, Malaysia, Sarawak, Kuching, Samarahan, ipta, education, research, Universiti Malaysia Sarawak
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HC Economic History and Conditions
Divisions: Academic Faculties, Institutes and Centres > Faculty of Economics and Business
Depositing User: Ab Rahim
Date Deposited: 06 Oct 2017 08:04
Last Modified: 06 Oct 2017 08:04

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