The Determinants of Foreign direct Investment (FDI) Inflow in the Developing South Asian Countries: A Panel Data Analysis
- 주제(키워드) FDI , South Asia , panel data , market size , labor cost , domestic investment
- 발행기관 고려대학교 대학원
- 지도교수 강성진
- 발행년도 2014
- 학위수여년월 2014. 8
- 학위구분 석사
- 학과 일반대학원 경제학과
- 원문페이지 45 p
- 실제URI http://www.dcollection.net/handler/korea/000000052170
- 본문언어 영어
- 제출원본 000045808464
초록/요약
Developing nations usually suffer from shortage of capital and lack of access to modern technology, etc. Therefore, Foreign Direct Investment (FDI) outcomes have become far more important for them than to developed nations as FDI resolves this lacking along with providing benefits to foreign investors. Indeed, FDI in any types will induce higher economic growth to host economies as well as contributive to long term economic development. This study analyses the determinants of FDI in South Asia using panel data analysis. Five developing nations in the region – Bangladesh, India, Nepal, Pakistan, and Sri lanka are chosen as the panel/country variable while the time period of the study is 1978 to 2011 (34 years). The parameters taken into consideration are market size, inflation, labor cost, infrastructure, trade opennness, domestic investment, external burden and government consumption. The econometric results show that market size and domestic investment have positive and significant impact on FDI inflow into the region while labor cost has negative and significant impact. Other variables that should be taken as considerations to increase FDI inflow into the region are infrastructure, trade openness and external debt.
more목차
1. INTRODUCTION ...1
1.1. Background ...1
1.2. Research Motivation ...5
2. MATERIALS AND METHODS ...6
2.1. Literature Review ...6
2.1.1. A Study by Azam and Lukman (2010) 6
2.1.2. A Study by Ranjan and Agrawal (2011) 8
2.1.3. A Study by Akinlo et al (2013) 9
2.1.4. A Study by Amal et al (2010) 11
2.1.5. Comparisons of the Previous Related Works 13
2.2. Potential Variables Determining FDI Inflows .14
2.2.1. Market Size 14
2.2.2. Economic Stability and Growth Prospects 15
2.2.3. Trade Openness 15
2.2.4. Infrastructure Facilities 15
2.2.5. Labor Cost 16
2.2.6. Gross Capital Formation 16
2.2.7. External Debt 16
2.2.8. Government Consumption 16
2.3. Data and Model .17
2.3.1. Data Description 17
2.3.2. Econometric Model 17
2.3.3. Estimation Method 20
3. ESTIMATION RESULTS .21
3.1. Fixed Effects (FE) and Random Effects (RE) Panel Estimation Method .21
4. DISCUSSION .26
4.1. Market Size in South Asia .26
4.2. Labor Cost in South Asia .27
4.3. Domestic Investment in South Asia .28
5. CONCLUSION .29
REFERENCES .32
