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The Effect of Financial Development on Foreign Direct Investment in ASEAN+4

Year: 2024

Type: article

Abstract: Foreign direct investment (FDI) is an important input to the achievement of a country's goals such as economic growth and poverty. The study looks at the impact of financial development (FD) on foreign direct investment (FDI) in nine ASEAN member states along with China, India, Japan and South Korea in 2018-2022. The estimate method used is the GMM method (generalized method of moment). The study found that financial development positively and significantly influenced the flow of foreign direct investment. Trade openness, human development and price levels were also found to influence FDI while economic growth was found to have no significant impact. The findings in this study imply that a good financial system is essential to attract even higher FDI.

Source: Jurnal Riset Ilmu Ekonomi

DOI: 10.23969/jrie.v4i3.150

Authors: Stannia Cahaya Suci, Tony Santika Chendrawan, Vadilla Mutia Zahara

Institution: Sultan Ageng Tirtayasa University

Language: English

Topic: International Business and FDI

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure, Partnerships for the goals

Open Access status: diamond

OpenAlex ID: W4405949587

FWCI:

Cites: 28

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Related to: 10