Assessing factors affecting FDI in developing Asian countries
https://doi.org/10.26794/2308-944X-2021-9-2-6-28
Abstract
The paper focuses on various factors that affect the inflow of Foreign Direct Investment in developing countries. The study majorly deals with Asian countries, namely India, China, Myanmar, Nepal, Pakistan, Bangladesh and Bhutan, that are progressing from being aid-dependent to trading giants. The factors affecting FDI are majorly categorised into dependent and independent variables. Here, in this study, the dependent variable considered is FDI inflow, and independent variables are market size, the value of the currency, export, import, gross fixed capital formation, GDP deflator, cost of borrowing and economic reforms. Pooled Ordinary Least Square (OLS), fixed effect and random effect regression analysis is done to ascertain the best regression model and various tests are performed to check the intensity of effect caused by each independent variable on our dependent variable.
About the Author
P. Gupta
University School of Humanities and Social Sciences Guru Gobind Singh Indraprastha University
India
India
Parul Gupta – MA Economics
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Review
For citations:
Gupta P. Assessing factors affecting FDI in developing Asian countries. Review of Business and Economics Studies. 2021;9(2):16-28. https://doi.org/10.26794/2308-944X-2021-9-2-6-28
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