Foreign Direct Investment And Sustainable Development Of Four Asean Members

This study attempts to answer the research question of what and to what extent are the economic (growth), social (inequality), and environmental (pollution) impacts of foreign direct investment (FDI) in the four Southeast Asian nations (ASEAN-4). The next question is how well the results of the stud...

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Main Author:	Idris Merican, Yasmine Merican
Format:	Thesis
Language:	English English
Published:	2007
Subjects:	Investments Foreign - Asia Southeastern
Online Access:	http://psasir.upm.edu.my/id/eprint/5046/1/FEP_2007_16.pdf
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id	my-upm-ir.5046
record_format	uketd_dc
spelling	my-upm-ir.50462013-05-27T07:20:00Z Foreign Direct Investment And Sustainable Development Of Four Asean Members 2007 Idris Merican, Yasmine Merican This study attempts to answer the research question of what and to what extent are the economic (growth), social (inequality), and environmental (pollution) impacts of foreign direct investment (FDI) in the four Southeast Asian nations (ASEAN-4). The next question is how well the results of the study fit the theories of FDI from both the neo-classical cum neo-liberal theories, dependency theory, and the pollution-haven hypothesis (PHH) perspective. Employing the time-series analyses utilizing the Autoregressive Distributive Lag (ARDL) technique suggest that the FDI does better than domestic investment at promoting growth levels in Malaysia, Indonesia but not for Thailand and the Philippines where the reverse is true. Hence, neo-liberal theory is supported in Malaysia and Indonesia while dependency theory is supported in Thailand and the Philippines. In terms of inequality, FDI improves income inequality in Malaysia and Indonesia but worsens inequality in Thailand and proved insignificant for the Philippines. Neo-liberalism is supported in Malaysia and Indonesia while dependency is supported in Thailand. However, Philippines is neutral to either school of thought. Environmental wise, the PHH which postulates that lower environmental standards in host-developing nations attract FDI from their developed countries of origin is supported in Malaysia, Thailand, and the Philippines but not in Indonesia where FDI is inversely related to pollution. Hence, the neo-liberal claim that FDI via multinationals brings cleaner technology to host developing nations is contested in these three nations but could be supported in Indonesia. The differences in the study’s findings could be attributable to the differences in FDI inflows’ composition itself. Malaysia’s FDI inflows mainly went to the secondary and followed by the primary sector and a trickle flowed into the tertiary sector. Thailand had slightly more FDI inflows into the tertiary sector as opposed to the secondary and far less into the primary sector. Indonesia’s FDI inflows mainly resided in the manufacturing sector, followed by the tertiary and primary sectors. Philippines had about equal FDI share in the primary and secondary sectors with the tertiary receiving the majority share. Investments, Foreign - Asia, Southeastern 2007 Thesis http://psasir.upm.edu.my/id/eprint/5046/ http://psasir.upm.edu.my/id/eprint/5046/1/FEP_2007_16.pdf application/pdf en public phd doctoral Universiti Putra Malaysia Investments, Foreign - Asia, Southeastern Faculty Economics and Management English
institution	Universiti Putra Malaysia
collection	PSAS Institutional Repository
language	English English
topic	Investments Foreign - Asia Southeastern
spellingShingle	Investments Foreign - Asia Southeastern Idris Merican, Yasmine Merican Foreign Direct Investment And Sustainable Development Of Four Asean Members
description	This study attempts to answer the research question of what and to what extent are the economic (growth), social (inequality), and environmental (pollution) impacts of foreign direct investment (FDI) in the four Southeast Asian nations (ASEAN-4). The next question is how well the results of the study fit the theories of FDI from both the neo-classical cum neo-liberal theories, dependency theory, and the pollution-haven hypothesis (PHH) perspective. Employing the time-series analyses utilizing the Autoregressive Distributive Lag (ARDL) technique suggest that the FDI does better than domestic investment at promoting growth levels in Malaysia, Indonesia but not for Thailand and the Philippines where the reverse is true. Hence, neo-liberal theory is supported in Malaysia and Indonesia while dependency theory is supported in Thailand and the Philippines. In terms of inequality, FDI improves income inequality in Malaysia and Indonesia but worsens inequality in Thailand and proved insignificant for the Philippines. Neo-liberalism is supported in Malaysia and Indonesia while dependency is supported in Thailand. However, Philippines is neutral to either school of thought. Environmental wise, the PHH which postulates that lower environmental standards in host-developing nations attract FDI from their developed countries of origin is supported in Malaysia, Thailand, and the Philippines but not in Indonesia where FDI is inversely related to pollution. Hence, the neo-liberal claim that FDI via multinationals brings cleaner technology to host developing nations is contested in these three nations but could be supported in Indonesia. The differences in the study’s findings could be attributable to the differences in FDI inflows’ composition itself. Malaysia’s FDI inflows mainly went to the secondary and followed by the primary sector and a trickle flowed into the tertiary sector. Thailand had slightly more FDI inflows into the tertiary sector as opposed to the secondary and far less into the primary sector. Indonesia’s FDI inflows mainly resided in the manufacturing sector, followed by the tertiary and primary sectors. Philippines had about equal FDI share in the primary and secondary sectors with the tertiary receiving the majority share.
format	Thesis
qualification_name	Doctor of Philosophy (PhD.)
qualification_level	Doctorate
author	Idris Merican, Yasmine Merican
author_facet	Idris Merican, Yasmine Merican
author_sort	Idris Merican, Yasmine Merican
title	Foreign Direct Investment And Sustainable Development Of Four Asean Members
title_short	Foreign Direct Investment And Sustainable Development Of Four Asean Members
title_full	Foreign Direct Investment And Sustainable Development Of Four Asean Members
title_fullStr	Foreign Direct Investment And Sustainable Development Of Four Asean Members
title_full_unstemmed	Foreign Direct Investment And Sustainable Development Of Four Asean Members
title_sort	foreign direct investment and sustainable development of four asean members
granting_institution	Universiti Putra Malaysia
granting_department	Faculty Economics and Management
publishDate	2007
url	http://psasir.upm.edu.my/id/eprint/5046/1/FEP_2007_16.pdf
_version_	1747810338825306112

Foreign Direct Investment And Sustainable Development Of Four Asean Members

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