Abstract

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ROLE OF INTEREST RATE IN ATTRACTING THE FDI: STUDY ON ASEAN 5 ECONOMY

Hira Aijaz Ahmed Siddiqui, Vesarach Aumeboonsuke


This paper is concerned with the foreign direct investment (FDI) inflow and its determinant in ASEAN 5. The analysis is based on the data over the years, 1986 to 2012 using Vector Auto regression (VAR) Technique. The objective is to analyze the relationship of (FDI) inflow and interest rates (IR). The finding suggests that interest rates of Thailand, Indonesia and Malaysia have negative relation with foreign