Open AccessThe Effect of Foreign Direct Investment and Innovation on High Technology Product Imports In Asean 6
Author(s) -
Roro Aprilia Putri Cahyani,
Tony Irawan,
Widyastutik
Publication year - 2019
Publication title -
international journal of scientific research in science, engineering and technology
Language(s) - English
Resource type - Journals
eISSN - 2395-1990
pISSN - 2394-4099
DOI - 10.32628/ijsrset196380
Subject(s) - foreign direct investment , spillover effect , business , international trade , panel data , product (mathematics) , order (exchange) , international economics , investment (military) , economics , geometry , mathematics , politics , political science , law , macroeconomics , finance , econometrics , microeconomics
Current technological development changes the people's lifestyle becoming progressively modern. Technological development encourages the rapid digitalization that occurs in all countries. The incapability of a country to meet domestic demand for digital products that are closely related to high technology content drives the import of high technology products. On the other hand, the development of Foreign Direct Investment (FDI) is essential in order to support the development of domestic technology of a country due to its spillover effects. ASEAN 6 is a highly attractive for foreign investors as it has strategic location, large market share and abundant resources. This study examines the influence of FDI and innovation on imported high technology products in ASEAN 6. This research employed the panel data analysis from six ASEAN countries during the period of 2007 to 2016. The results of this study indicated that FDI and innovation have a positive effect on imports of high products technology in ASEAN 6.