Exploring the Determinants of FDI: An Asian Perspective
DOI:
https://doi.org/10.32350/jarms.71.02Keywords:
financial development, foreign direct investment, information and communication technology, real effective exchange rateAbstract
Foreign Direct Investment (FDI) as a driver of economic growth is increasingly attracting the attention of researchers and policymakers. Despite the growing literature on FDI, a significant gap exists concerning the antecedents of FDI, particularly in the context of emerging nations. To reduce this gap, the study examines the effect of four independent variables, namely, financial development, interest rate, information and communication technology, and the real effective exchange rate, on FDI inflows. The study uses the data for the eight major emerging economies of Asia, i.e., China, India, Malaysia, Bangladesh, Pakistan, Iran, Singapore, and Indonesia, for the 20 years’ time duration ranging from 2000 to 2021. The analysis of the data indicates that all the variables exert a strong positive influence on FDI, except for the real effective exchange rate, which exerts a negative influence. The study offers theoretical and practical insights to the researchers, investors, and policymakers.
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Copyright (c) 2026 Madiha Saleem, Nadia Hanif, Muhammad Bilal Ahmad
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