" IMPACT OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH: COMPARATIVE ANALYSIS OF ASEAN COUNTRIES."

Abstract

‘Foreign Direct Investment’ is a crucial degree of the preferred economic growth strategy, especially in developing nations like those in the ASEAN region. This study focused on assessing the influence of FDI on the economic growth of ASEAN nations from 2000 to 2023 through a comparative examination. This research explored the impacts of ‘Foreign Direct Investment’ on capital accumulation, technology transfer, and employment using neoclassical growth theory, endogenous growth theory, and eclectic paradigm. The evidence of the FDI effects is also examined and discussed to understand the variation in FDI effects in the context of ASEAN countries regarding economic development, policy environment, governance, and capability. Thus, the paper contributes to the theoretical and practical knowledge base and policy discourses by identifying ways in which host countries can build on the benefits of FDI and manage the risks in different settings. Therefore, it can be concluded that the examined relationship is rather intricate, whereby FDI has influenced growth patterns in the ASEAN countries.