Open AccessImpact of Regional Economic Integration on FDI in SAARC Countries
Author(s) -
J. P. Senthil Kumar
Publication year - 2022
Publication title -
journal of accounting and finance in emerging economies
Language(s) - English
Resource type - Journals
eISSN - 2519-0318
pISSN - 2518-8488
DOI - 10.26710/jafee.v8i1.2191
Subject(s) - foreign direct investment , originality , economic integration , regional integration , international trade , value (mathematics) , economics , international economics , business , investment (military) , economic geography , political science , macroeconomics , computer science , machine learning , politics , law , creativity
Purpose: The empirical literature is inconclusive regarding whether some regions are more effective than others at attracting Foreign Direct Investment (FDI). The article aims to ascertain the effect of regional economic integration on FDI in SAARC member countries from 1998 to 2017.
Design/Methodology/Approach: Mix research technique has been used. While qualitative research entails in-depth literature readings and reports, quantitative analysis entails presenting data via graphs and tables.
Findings: Findings suggest a significant positive connection between FDI and regional integration in the SAARC economies. While regional integration has a vital role in increasing SAARC's share of global commerce, it has increased FDI inflows and its share in Asia and the world. As a result, while we cannot overlook both classic and non-traditional economic factors affecting FDI, regional integration may play a critical role in fostering FDI growth.
Implications/Originality/Value: By boosting cross-border investment, regional cooperation will allow businesses, particularly those from smaller nations, to expand their size and capabilities to compete worldwide. It can also aid in increasing efficiency and reforming industries. SAARC countries must make significant progress toward integration.