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The Nexus Between Interest Rates, Corruption of Control and Infrastructure on Foreign Direct Investment in Emerging Asia

Year: 2025

Type: article

Abstract: This study examines the effects of interest rates, corruption of control, and infrastructure on Foreign Direct Investment (FDI) in emerging Asia. This study took samples from Indonesia, Malaysia, Thailand, India, South Korea, Oman, and Qatar. By using secondary data sourced from the World Bank with the period 2004 to 2021. This study uses a fixed effect model type of panel data regression. The results show that interest rates have a negative and significant effect on FDI, while control of corruption and infrastructure are able to significantly increase FDI. Foreign investors tend to look for a cheaper and more stable investment environment, therefore high interest rates make it less attractive. Developing Asian countries need to invest in infrastructure projects and ensure that transparent and clean business practices are implemented.

Source: Journal of Smart Economic Growth

Authors: Ariodillah Hidayat, Dwiki Ariefandri, Alghifari Mahdi Igamo, Xenaneira Shodrokova

Institution: Sriwijaya 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

Open Access status: diamond

OpenAlex ID: W7125622852

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