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FDI, Regional Economic Integration and Endogenous Growth: Some Evidence from Southeast Asia
Author(s) -
BendeNabende Anthony,
Ford Jim,
Slater Jim
Publication year - 2001
Publication title -
pacific economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.34
H-Index - 33
eISSN - 1468-0106
pISSN - 1361-374X
DOI - 10.1111/1468-0106.00140
Subject(s) - foreign direct investment , spillover effect , economics , international economics , endogenous growth theory , disadvantage , international trade , empirical evidence , knowledge spillover , monetary economics , human capital , macroeconomics , economic growth , political science , philosophy , epistemology , law
This empirical study investigates whether FDI caused spillover effects which led to the economic growth of the ASEAN‐5 economies (1970–96), and, if that is so, whether the ASEAN Preferential Trade Agreement (APTA) had a significant effect in attracting FDI to the region. Its findings are that FDI has stimulated economic growth most effectively through human factors, and knowledge/technological learning‐by‐doing effects; and that the formation of the APTA had a lagged influence on FDI inflows to the advantage of the more‐developed member countries, and disadvantage of the less‐developed member countries.