THE INFLUENCE OF MACROECONOMIC AND INSTITUTIONAL FACTORS ON FOREIGN DIRECT INVESTMENT IN SOUTH-EAST ASIAN COUNTRIES

Ergasheva Bibi-Robiya, Maaz Ahmad, Kuldasheva Zebo

Innovation science and technologiy · 2025-yil

Annotatsiya

This research seeks to determine the factors affecting FDI inflows into a country, analyzing institutional variablessuch as rule of law and political stability rating and macroeconomic and fnancial indicators such as inflation, interestrates, and market capitalization of domestically listed companies. Utilizing panel data for 3 ASEAN countries (Malaysia,Indonesia, Singapore), the study performed fxed OLS regression analysis using Stata 18.0, and the output model showsa statistically signifcant explanatory power with R squared of 0.0604. Main fndings are inflation (p = 0.009), marketcapitalization rate (p = 0.000), and interest rate (p = 0.003) have statistically signifcant positive effects on FDI, marketcapitalization rate being the strongest one affecting FDI. While political stability and rule of law are theoretically signifcant,the data shows weak influence of these variables on FDI. These results suggest that policymakers should prioritizefnancial incentives and develop good fnancial infrastructure should they want to attract more FDI.

Maqola ma’lumotlari
MualliflarErgasheva Bibi-Robiya, Maaz Ahmad, Kuldasheva Zebo
JurnalInnovation science and technologiy
Nashr sanasi2025-09-01
Jild1
Son9
Betlar116-122
TilIngliz
DOI10.5281/zenodo.17448275

Kalit so‘zlar

FDI, political stability, rule of law, interest rate, market capitalization of domestic companies, inflation.

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